9

                                
                                
                          UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON, DC  20549
                                
                           FORM 10-QSB
[X]       Quarterly Report Under Section 13 or 15(d) of the
                   Securities Exchange Act of 1934

          For the quarterly period ended March 31, 1997
                                
                               or
                                
[ ]       Transition Report Pursuant to Section 13 or 15(d) of
               the Securities Exchange Act of 1934
                                
     For the transition period from __________ to __________

                 Commission File Number:  1-5707


              GENERAL EMPLOYMENT ENTERPRISES, INC.
(Exact name of small business issuer as specified in its charter)


          Illinois                                  36-6097429
(State or other jurisdiction of                 (I.R.S. Employer
incorporation or organization)                Identification Number)

  One Tower Lane, Suite 2100, Oakbrook Terrace, Illinois 60181
            (Address of principal executive offices)

                         (630) 954-0400
                   (Issuer's telephone number)



     Check whether the issuer (1) filed all reports required to
be filed by Section 13 or 15(d) of the Exchange Act during the
past 12 months (or for such shorter period that the registrant
was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.

                                                  Yes  X    No __

     As of April 30, 1997, there were 2,651,796 shares of common
stock outstanding.



                 PART I.  FINANCIAL INFORMATION
                                
GENERAL EMPLOYMENT ENTERPRISES, INC.
CONDENSED CONSOLIDATED BALANCE SHEET (Unaudited)
                                           March 31 September 30
(In thousands)                                 1997         1996
ASSETS
Current assets:
Cash and cash equivalents                   $ 5,559      $ 6,064
Accounts receivable, less allowances
  (Mar. 1997--$386; Sept. 1996--$341)         3,345        2,746
  Total current assets                        8,904        8,810

Property and equipment:
Furniture, fixtures and equipment             2,669        2,588
Accumulated depreciation                    (2,243)      (2,227)
  Net property and equipment                    426          361

Other assets                                    488          410

  Total assets                              $ 9,818      $ 9,581


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accrued compensation and payroll taxes      $ 3,102      $ 3,510
Other current liabilities                       549          890
  Total current liabilities                   3,651        4,400

Long-term obligations                           421          375

Shareholders' equity:
Common stock, no-par value;
  authorized -- 20,000 shares;
  issued and outstanding -- 2,652 shares         27           27
Capital in excess of stated value of shares   4,228        4,228
Retained earnings                             1,491          551
  Total shareholders' equity                  5,746        4,806

  Total liabilities and shareholders' equity$ 9,818      $ 9,581
See notes to condensed consolidated financial statements.


GENERAL EMPLOYMENT ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
                                  Three Months        Six Months
                                Ended March 31    Ended March 31
(In Thousands, Except Per Share)  1997    1996     1997     1996

Net revenues:
Permanent placement services   $ 5,134 $ 4,088  $ 9,393  $ 7,566
Contract services                2,192   1,716    3,837    3,235

  Net revenues                   7,326   5,804   13,230   10,801

Costs and expenses:
Cost of services                 5,202   4,116    9,484    7,751
General and administrative         999   1,022    1,917    1,870

Income before income taxes       1,125     666    1,829    1,180
Provision for income taxes         450     265      730      465

Net income                     $   675 $   401  $ 1,099   $  715

Net income per share           $   .25 $   .15  $   .41   $  .27

Average number of shares         2,675   2,623    2,676    2,623
See notes to condensed consolidated financial statements.


GENERAL EMPLOYMENT ENTERPRISES, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
                                                    Six Months
                                                 Ended March 31
(In Thousands)                                     1997    1996

Operating activities:
Net income                                      $ 1,099  $  715
Noncash costs and expenses                          109      55
Changes in current assets and
 current liabilities -
  Accounts receivable                             (599)   (708)
  Accrued compensation and payroll taxes          (408)     514
  Other current liabilities                       (341)     (9)
  Net cash provided (used) by
   operating activities                           (140)     567

Net cash used by investing activities             (206)    (97)

Net cash used by financing activities             (159)   (102)

Increase (decrease) in cash and cash equivalents  (505)     368
Cash and cash equivalents at beginning of period  6,064   3,225

Cash and cash equivalents at end of period       $5,559  $3,593
See notes to condensed consolidated financial statements.


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

Interim Financial Statements

The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with generally
accepted accounting principles for interim financial information
and with the instructions to Form 10-QSB.  Accordingly, they do
not include all of the information and footnotes required by
generally accepted accounting principles for complete financial
statements.  In the opinion of management, all adjustments
(consisting of normal recurring accruals) considered necessary
for a fair presentation have been included.  This financial
information should be read in conjunction with the financial
statements included in the Company's annual report on Form 10-KSB
for the year ended September 30, 1996.  Operating results for
interim periods are not necessarily indicative of the results
that may be expected for the entire year.


Lease Obligations

In February 1996, the Company entered into a new, 10-year lease
agreement covering its corporate headquarters office space.  The
previous lease was scheduled to expire in November 1997.  As a
result, the Company wrote off a deferred rent liability
associated with the previous lease and recorded a $144,000 credit
to rent expense.


Common Stock

The Company declared a 15% stock dividend in September 1996,
payable on November 1, 1996.  All per share amounts have been
adjusted to reflect the dividend.

The Company declared a special cash dividend on its common stock
of $ .06 per share in the December 1996 quarter and $ .04 per
share in the December 1995 quarter.



MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS


Corporate Strategies and Economic Factors

The Company provides permanent placement and contract temporary
staffing services for business and industry, specializing in the
placement of information technology, engineering, technical and
accounting personnel. For the fiscal year ended September 30,
1996, the Company derived 70% of its revenues from permanent
placements and 30% of its revenues from contract services. As of
March 31, 1997, the Company operated 33 branch offices located in
major metropolitan and business centers in 13 states.

The demand for the Company's services has been strong in recent
years.  For the three fiscal years ended September 30, 1996, the
Company's annual rate of revenue growth was 43% for contract
services and 24% for permanent placement services.  Management
believes that this growth is attributable to three factors.
First, the Company specializes in the fast-growing information
technology field.  Second, it fills a growing need in the
workplace for contract temporary help.  And third, the Company
offers its clients the alternative of either temporary or full-
time staffing assistance.

The Company's business is affected by the U.S. economy and
national hiring levels.  The last two years were characterized by
relatively low, but stable, economic growth and historically low
levels of unemployment.  These economic conditions have
contributed to the growing demand for the Company's services.

Management expects that the Company's growth trend will continue
in the future.  To help generate this growth, the Company opened
six new branch offices during fiscal 1996 and four new branch
offices during the first six months of fiscal 1997.  The Company
plans to open a total of eight new offices during fiscal 1997,
another 12 offices during fiscal 1998 and 16 new branches during
fiscal 1999. Generally, the Company enters into short-term leases
for new locations, initially using shared office facilities
whenever possible; this approach minimizes costs during the start-
up period.


Second Quarter Results of Operations

For the three months ended March 31, 1997, consolidated revenues
were $7,326,000, up $1,522,000 (26%) from last year's $5,804,000.
Permanent placement revenues increased $1,046,000 (26%), on a 26%
higher average placement fee.  Contract service revenues
increased $476,000 (28%), due to a 7% increase in billable hours
and an 18% higher average hourly billing rate.

The consolidated cost of services for the three months ended
March 31, 1997 was $5,202,000, up $1,086,000 (26%) from 1996.
Branch manager and consultant compensation increased 25%, and the
payroll for contract service workers increased 29%, as a result
of the higher volume of business this year.  Occupancy costs
increased 65%, primarily because the 1996 period reflected a
nonrecurring gain of $144,000 resulting from the negotiation of a
new corporate headquarters office lease.  Advertising expenses
increased 13%, and all other operating costs increased 7%.  The
cost of services as a percent of revenues was 71.0% in fiscal
1997, about the same as last year.

General and administrative expenses for the three months ended
March 31, 1997 were $999,000, which was a $23,000 (2%) decrease
from 1996.

The Company had pretax income of $1,125,000 for the three months
ended March 31, 1997, which was a $459,000 (69%) increase over
pretax income of $666,000 last year.  After a provision for
income taxes, net income was $675,000, or $.25 per share, in the
three months ended March 31, 1997, a $274,000 (68%) improvement
compared with net income of $401,000, or $ .15 per share, last
year.


Six Months Results of Operations

For the six months ended March 31, 1997, consolidated revenues
were $13,230,000, up $2,429,000 (22%) from last year's
$10,801,000.  Permanent placement revenues increased $1,827,000
(24%), on 4% more placements and a 19% higher average placement
fee.  Contract service revenues increased $602,000 (19%), due to
an 18% higher average hourly billing rate.

The consolidated cost of services for the six months ended March
31, 1997 was $9,484,000, up $1,733,000 (22%) from 1996.  Branch
manager and consultant compensation increased 25%, and the
payroll for contract service workers increased 20%, as a result
of the higher volume of business this year.  Occupancy costs
increased 31%, primarily because the 1996 period reflected a
nonrecurring gain of $144,000 resulting from the negotiation of a
new corporate headquarters office lease.  Advertising expenses
increased 22%, and all other operating costs increased 10%.  The
cost of services as a percent of revenues was 71.7% in fiscal
1997, about the same as last year.

General and administrative expenses for the six months ended
March 31, 1997 were $1,917,000, which was a $47,000 (3%) increase
from 1996.

The Company had pretax income of $1,829,000 for the six months
ended March 31, 1997, which was a $649,000 (55%) increase over
pretax income of $1,180,000 last year.  After a provision for
income taxes, net income was $1,099,000, or $ .41 per share, in
the six months ended March 31, 1997, a $384,000 (52%) improvement
compared with net income of $715,000, or $ .27 per share, last
year.


Financial Condition

During the six months ended March 31, 1997, the Company's cash
and cash equivalents decreased by $505,000 to a balance of
$5,559,000.  Net income provided $1,099,000 during the period.
However, $599,000 was used for an increase in accounts
receivable, $408,000 was used to reduce accrued compensation and
payroll tax liabilities, and $237,000 was used for other
operating activities.  In addition, the Company used $201,000 for
the acquisition of property and equipment and $159,000 for the
payment of a cash dividend.

The Company's net working capital was $5,254,000 as of March 31,
1997, compared with $4,410,000 at September 30, 1996, and
shareholders' equity was $5,746,000 at March 31, 1997, compared
with $4,806,000 last September.

As of March 31, 1997, the Company had no debt outstanding, and it
had a $1,000,000 line of credit available for working capital
purposes. Management believes that existing resources are
adequate to meet the Company's current operating needs.

As of March 31, 1997, the Company had no commitments for the
acquisition of property and equipment.  All of its facilities are
leased, and information about future minimum lease payments is
presented in the notes to consolidated financial statements
contained in the Company's annual report on Form 10-KSB for the
year ended September 30, 1996.  The cost of opening new offices
during fiscal 1997 is expected to be minor because the facilities
will be leased.



                   PART II - OTHER INFORMATION
                                
Item 4  Submission of Matters to a Vote of Security Holders

At the annual meeting of shareholders on February 24, 1997, the
shareholders approved the Company's 1997 Stock Option Plan.
There were 1,493,144 shares voted for the adoption, and there
were 1,158,652 shares withheld.  In addition, the shareholders
elected all of the nominees for election as directors.  The name
of each director elected, together with the number of votes cast
for election and the number of votes withheld, are presented
below:

  Nominee                    Votes For     Votes Withheld

  Sheldon Brottman           2,447,425       30,126
  Leonard Chavin             2,440,483       37,068
  Delain G. Danehey          2,451,161       26,390
  Herbert F. Imhoff          2,451,717       25,834
  Herbert F. Imhoff, Jr.     2,453,083       24,468
  Walter T. Kerwin, Jr.      2,447,860       29,691
  Howard S. Wilcox           2,448,461       29,090


Item 6  Exhibits and Reports on Form 8-K

The following exhibits are filed as part of this report:

No.  Description of Exhibit

 3   By-Laws, as amended February 24, 1997.

27   Financial Data Schedule for the six months ended March 31, 1997.


There were no reports on Form 8-K filed during the quarter.



                           SIGNATURES


In accordance with the requirements of the Exchange Act, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.


                          GENERAL EMPLOYMENT ENTERPRISES, INC.
                                       (Registrant)


Date:  May 2, 1997            By:   /s/  Herbert F. Imhoff
                              Herbert F. Imhoff
                              Chairman of the Board
                              and Chief Executive Officer


Date:  May 2, 1997            By:   /s/  Kent M. Yauch
                              Kent M. Yauch
                              Chief Financial Officer
                              and Treasurer