UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON, DC  20549

                            FORM 10-Q

[X]  Quarterly Report Under Section 13 or 15(d) of the Securities
     Exchange Act of 1934

     For the quarterly period ended June 30, 1999

                               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 registrant 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)          (Zip Code)

                         (630) 954-0400
      (Registrant's telephone number, including area code)

                         Not Applicable
(Former name, former address and former fiscal year, if changed since last
report)

Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act during the preceding 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 __

The number of shares outstanding of the issuer's common stock as
of July 30, 1999 was 4,423,566.




                 PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEET (Unaudited)
                                            June 30 September 30
(In Thousands)                                 1999         1998
ASSETS
Current assets:
Cash and short-term investments             $10,899      $10,459
Accounts receivable, less allowances
  (June 1999--$738; Sept. 1998--$565)         4,177        3,639

Total current assets                         15,076       14,098

Property and equipment:
Furniture, fixtures and equipment             3,657        3,089
Accumulated depreciation                    (2,541)      (2,391)

Net property and equipment                    1,116          698

Other assets                                  1,053          836

Total assets                                $17,245      $15,632


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accrued compensation and payroll taxes      $ 3,820      $ 4,041
Other current liabilities                       679          796

Total current liabilities                     4,499        4,837

Long-term obligations                           479          460

Shareholders' equity:
Common stock, no-par value; authorized --
  20,000 shares; issued and outstanding --
  4,424 shares                                   44           44
Capital in excess of stated value of shares   4,576        4,576
Retained earnings                             7,647        5,715

Total shareholders' equity                   12,267       10,335

Total liabilities and shareholders' equity  $17,245      $15,632
See notes to consolidated financial statements.



GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
                                  Three Months       Nine Months
                                 Ended June 30     Ended June 30
(In Thousands, Except Per Share)  1999    1998     1999     1998

Net revenues:
Placement services             $ 5,859  $6,228  $17,420  $18,924
Contract services                4,611   2,908   12,202    8,531

Net revenues                    10,470   9,136   29,622   27,455

Operating expenses:
Direct costs of contract
 services                        2,942   1,846    7,967    5,482
Selling                          3,576   3,884   10,835   11,665
General and administrative       2,544   2,358    7,579    6,868

Total operating expenses         9,062   8,088   26,381   24,015

Income from operations           1,408   1,048    3,241    3,440
Interest income                    123     112      357      310

Income before income taxes       1,531   1,160    3,598    3,750
Provision for income taxes         620     460    1,445    1,495

Net income                     $   911  $  700  $ 2,153  $ 2,255

Net income per share:
Basic                          $   .21  $  .16  $   .49  $   .51
Diluted                        $   .20  $  .15  $   .48  $   .49

Average number of shares:
Basic                            4,424   4,424    4,424    4,416
Diluted                          4,450   4,593    4,454    4,622
See notes to consolidated financial statements.



GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
                                                    Nine Months
                                                  Ended June 30
(In Thousands)                                     1999    1998

Operating activities:
Net income                                      $ 2,153 $ 2,255
Depreciation and other noncurrent items             222     197
Accounts receivable                               (538)   (606)
Accrued compensation and payroll taxes            (221)     469
Other current liabilities                         (117)   (341)

Net cash provided by operating activities         1,499   1,974

Investing activities:
Acquisition of property and equipment and
  other noncurrent items                          (838)   (426)
Short-term investments                              918 (2,401)

Net cash provided (used) by investing activities     80 (2,827)

Financing activities:
Exercises of stock options                           --     301
Cash dividend declared                            (221)   (201)

Net cash provided (used) by financing activities  (221)     100

Increase (decrease) in cash and cash equivalents  1,358   (753)
Cash and cash equivalents at beginning of period  4,500   3,188

Cash and cash equivalents at end of period        5,858   2,435
Short-term investments at end of period           5,041   6,960

Cash and short-term investments                 $10,899 $ 9,395
See notes to consolidated financial statements.



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)


Interim Financial Statements

The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q.  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, 1998.


Common Stock

The Company issued a 10% stock dividend on October 30,1998.  All
per share amounts for fiscal 1998 have been restated.

The Company declared cash dividends of $.05 per common share on
November 16, 1998 and $ .05 per share on November 17, 1997.



Item 2.  Management's Discussion and Analysis of Financial
Condition and Results of Operations.


Description of Operations

The Company provides placement and contract staffing services for
business and industry, specializing in the placement of
professional information technology, engineering and accounting
personnel.  As of June 30, 1999, the Company operated 43 offices
located in major metropolitan and business centers in 14 states.

The strong demand for information technology professionals in
recent years has had a favorable impact on the Company's results
of operations. This demand has resulted in increased contract
hours billed to clients, and the average placement fee has risen
as the average base salary of individuals placed has grown.  For
the five fiscal years ended September 30, 1998, the Company's
average annual rate of revenue growth was 28%.  To accommodate
the demand for its services, the Company opened 25 new branch
offices since October 1995, including one new office in fiscal
1999 and nine new offices in fiscal 1998.

Although the Company's contract service division continued to
grow during the first nine months of the 1999 fiscal year, the
Company experienced a decline in placement service revenues.
Management attributes this decline to several factors, including
client employers' decisions for increased utilization of contract
employees in lieu of full-time employment staffing, more employer
emphasis on retention of new hires by increased scrutiny and
screening of full-time employee candidates, therefore lengthening
the hiring process time, and lower productivity with
inexperienced branch office staff at some of the Company's newer
locations.

The Company has deferred any new branch office openings, while it
addresses issues related to the changing marketplace, under-
performing branch operations and staff development.  During the
1999 third quarter, it closed five marginally performing branch
offices.


Third Quarter Results of Operations

For the three months ended June 30, 1999, consolidated revenues
of $10,470,000 were up $1,334,000 (15%) from the third quarter
last year.  Placement service revenues decreased $369,000 (6%),
as a result of an 8% decrease in the number of placements,
partially offset by a 3% higher average placement fee.  Contract
service revenues increased $1,703,000 (59%) due to a 50% increase
in billable hours and a 5% higher average hourly billing rate.
Contract service revenues represented 44% of the Company's
consolidated revenues for the quarter, while placement service
revenues accounted for 56% of the consolidated total.

The direct costs of contract services increased $1,096,000 (59%)
over last year.  The gross profit on contract services was
$1,669,000 this year, compared with $1,062,000 last year, and the
gross profit margin on contract services was 36.2% this year,
compared with 36.5% last year.  Consistent with staffing industry
practices, the direct costs of contract services are considered
to be the wages and the related payroll taxes and benefits of
contract workers.  Selling expenses for the third quarter
decreased $308,000 (8%) from last year's third quarter.
Commission expense decreased 7% due to the lower placement
revenues, while recruitment advertising expense decreased 16%.
General and administrative expenses for the quarter increased
$186,000 (8%) from last year.  Branch office salaries and wages
increased 21%, and occupancy costs increased 17%, while all other
general and administrative expenses decreased 7%.  As a result,
total operating expenses increased $974,000 (12%) for the
quarter.

The Company had income from operations of $1,408,000, which was a
$360,000 (34%) increase from $1,048,000 in the prior year's third
quarter.  The operating profit margin of 13.4% this year
increased 1.9 points from 11.5% last year.

Interest income for the third quarter increased $11,000 (10%) due
to higher investable funds.

The Company had pretax income of $1,531,000 for the quarter,
which was an increase of $371,000 (32%) from last year.  The
effective income tax rate was 40.5% this year and 39.7% last
year.

After taxes, net income was $911,000 for the quarter ended June
30, 1999, which was a $211,000 (30%) increase compared with net
income of $700,000 last year.  Diluted net income per share was $
 .20 this year, compared with $ .15 last year.


Nine Months Results of Operations

For the nine months ended June 30, 1999, consolidated revenues of
$29,622,000 were up $2,167,000 (8%) from last year's nine month
period.  Placement service revenues decreased $1,504,000 (8%), as
a result of a 13% decrease in the number of placements, partially
offset by a 6% higher average placement fee.  Contract service
revenues increased $3,671,000 (43%) due to a 34% increase in
billable hours and a 7% higher average hourly billing rate.
Contract service revenues represented 41% of consolidated
revenues for the nine-month period, while placement service
revenues represented 59% of the total.

The direct costs of contract services increased $2,485,000 (45%)
over last year.  The gross profit on contract services was
$4,235,000 this year, compared with $3,049,000 last year, and the
gross profit margin on contract services was 34.7% this year
compared with 35.7% last year.  Selling expenses for the nine
months decreased $830,000 (7%) from the same period last year.
Commission expense decreased 9% due to the lower placement
revenues, while recruitment advertising expense increased 4%.
General and administrative expenses for the nine months increased
$711,000 (10%) from last year.  This was largely associated with
the effects of opening new branch offices during the 1998 fiscal
year.  Branch office salaries and wages increased 26% and
occupancy costs increased 19% for the period, while all other
general and administrative expenses decreased 5%.  As a result,
total operating expenses increased $2,366,000 (10%) for the nine
month period.

The Company had income from operations of $3,241,000, which was a
$199,000 (6%) decrease from $3,440,000 in the prior year's nine
month period.  The operating profit margin of 10.9% this year
decreased 1.6 points from 12.5% last year, due to the effects of
lower contract margins and higher general and administrative
expenses.

Interest income for the nine months increased $47,000 (15%) due
to higher investable funds.

The Company had pretax income of $3,598,000 for the first nine
months, which was a decrease of $152,000 (4%) from last year.
The effective income tax rate was 40.2% this year and 39.9% last
year.

After taxes, net income was $2,153,000 for the nine month period
ended June 30, 1999, which was a $102,000 (5%) decline compared
with net income of $2,255,000 last year.  Diluted net income per
share was $ .48 this year, compared with $ .49 last year.


Financial Condition

During the nine months ended June 30, 1999, the Company's cash
and short-term investments increased by $440,000 to a balance of
$10,899,000.  Net cash provided by operating activities was
$1,499,000 for the period.  Net income provided $2,153,000, while
an increase in accounts receivable required $538,000, a reduction
of accrued compensation and payroll tax liabilities required
$221,000, and other operating activities provided $105,000.  The
Company used $838,000 during the period for investments in
property and equipment and other assets, and the payment of a
cash dividend required $221,000.

The Company's net working capital was $10,577,000 as of June 30,
1999, compared with $9,261,000 at September 30, 1998, and
shareholders' equity was $12,267,000 at June 30, 1999, compared
with $10,335,000 last September.

During fiscal 1999 the Company initiated a program to spend
approximately $1,000,000 for the acquisition of additional
computer equipment, applicant retrieval software and new office
furniture.  As of June 30, 1999, there was approximately $500,000
remaining to be spent under this program, of which approximately
$280,000 was committed.   Approximately $250,000 is expected to
be spent during the fourth quarter of fiscal 1999, and $250,000
is expected to be spent in fiscal 2000.  All of the Company's
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, 1998.

As of June 30, 1999, 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 anticipated operating needs.


Year 2000 Issues

Issues surrounding the year 2000 are the result of older computer
programs being written using two digits rather than four digits
to define a year.  As a result, date-sensitive computer software
or hardware containing this defect could be susceptible to
miscalculations or system failures if not corrected or replaced.

As of October 1998, all of the Company's internal software and
computer hardware were compliant with the year 2000, and the
Company does not anticipate any difficulty in processing
transactions or conducting business in the next millennium.

The Company is in the process of identifying what effect, if any,
that the year 2000 will have on the operations of third parties
that could materially affect the operations of the Company.
Management is in the process of identifying potentially
significant third parties, and expects to complete an assessment
of their readiness by September 1999.  The potential effect on
the
Company of non-compliance by third parties is not determinable at
this time.  However, due to the service nature of the Company's
business, management believes that it would be able to readily
find alternate suppliers in the event that existing providers
might fail.


Forward Looking Information

The Company's business, particularly placement services, can be
volatile and may fluctuate from quarter to quarter.  Operating
results for interim periods are not necessarily indicative of
results that may be expected for the entire year.  Some of the
factors that could affect the Company's future performance
include, but are not limited to, general business conditions, the
demand for the Company's services, competitive market pressures,
and the ability of the Company to attract and retain qualified
personnel for regular full-time placement and contract project
assignments.




                   PART II - OTHER INFORMATION



Item 6.  Exhibits and Reports on Form 8-K.


The following exhibit is filed as part of this report:

No.  Description of Exhibit



27   Financial Data Schedule for the nine months ended June 30, 1999.


The Company filed no reports on Form 8-K during the quarter.




                           SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of
1934, 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:  August 12, 1999        By:   /s/  Herbert F. Imhoff
                              Herbert F. Imhoff
                              Chairman of the Board
                              and Chief Executive Officer


Date:  August 12, 1999        By:   /s/  Kent M. Yauch
                              Kent M. Yauch
                              Chief Financial Officer
                              and Treasurer