FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

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



For Quarter Ending September 30, 1998              Commission file number 0-7832
                   ------------------                                     ------



                         JOURNAL EMPLOYEES' STOCK TRUST
             (Exact name of registrant as specified in its charter)


             WISCONSIN                                    39-6153189
 (State or other jurisdiction of           (I.R. S. Employer Identification No.)
   incorporation or organization)


P.O. Box 661,     333 W. State St.                   Milwaukee, Wisconsin 5320l
(Address of principal executive offices)                    (Zip Code)



                                  414-224-2728
              (Registrant's telephone number, including area code)




(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 of 1934 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


<PAGE>


                                    FORM 10-Q
                         JOURNAL EMPLOYEES' STOCK TRUST



Quarter Ended September 30, 1998                  Commission file number 0-7832
              ------------------                                         ------



                                      INDEX


                                                                       Page No.

Part I.       Financial Information (Unaudited)


              Statement of Cash and Liabilities                             1


              Statement of Trust Income                                     2


              Statement of Cash Flows                                       3


              Notes to Financial Statements                                 4


              Management's Discussion and Analysis of
              Financial Condition and Results of Operations                 5


Part II.      Other Information                                             6


<PAGE>


                                    FORM 10-Q
                         JOURNAL EMPLOYEES' STOCK TRUST


For Quarter Ended September 30, 1998               Commission file number 0-7832
                  ------------------                                      ------



                        Statement of Cash and Liabilities



                                           9/30/98                     12/31/97
                                          ----------                   --------
                                          (Unaudited)

Assets:

         Cash in bank                    $          0                 $     100 
                                         ------------                 ----------


                                         $          0                 $     100 
                                         ============                 ==========



Liabilities:

         Note payable to Journal 
           Communications Inc.           $         0                 $     100 
                                          -----------                 ----------


                                         $         0                 $     100 
                                          ===========                 ==========




          Note:     The Statement of Cash and  Liabilities  at December 31, 1997
                    has been derived from the audited  financial  statements  at
                    that date.



                        See notes to financial statements


                                        1


<PAGE>


                                    FORM 10-Q

                         JOURNAL EMPLOYEES' STOCK TRUST


For Quarter Ended September 30, 1998               Commission file number 0-7832
                  -------------------                                     ------

<TABLE>
                            Statement of Trust Income
                            -------------------------
<CAPTION>

                                           Three Months Ended                    Nine Months Ended  

                                           09/30/98        09/30/97         09/30/98       09/30/97
                                         (Unaudited)     (Unaudited)      (Unaudited)     (Unaudited)

 Dividend on common stock of

    Journal Communications, Inc.
<S>                                       <C>             <C>             <C>             <C>        
    Held by the Trust                     $6,922,987      $6,726,254      $20,962,510     $20,228,469
                                          ----------      ----------      -----------     -----------


                                          $6,922,987      $6,726,254      $20,962,510     $20,228,469
                                          ==========      ==========      ===========     ===========



      Per share                        $        0.55   $        0.55     $       1.65    $       1.65
                                       -------------   -------------     ------------   -------------

                                       $        0.55   $        0.55     $       1.65    $       1.65
                                       =============   =============     ============    ============

 Dividend to holder of units of           $6,922,987      $6,726,254      $20,962,510     $20,228,469
                                          ----------      ----------      -----------     -----------
      Beneficial interest

                                          $6,922,987      $6,726,254      $20,962,510     $20,228,469
                                          ==========      ==========      ===========     ===========



      Per unit                           $      0.55     $      0.55       $     1.65    $       1.65
                                         -----------     -----------       ----------       ---------

                                         $      0.55     $      0.55       $     1.65    $       1.65
                                         ===========     ===========       ==========       =========
</TABLE>


                                     See notes to financial statement


                                                    2


<PAGE>


                                    FORM 10-Q

                         JOURNAL EMPLOYEES' STOCK TRUST


For Quarter Ended September 30, 1998               Commission file number 0-7832
                  -------------------                                     ------


                            Statement of Cash Flows
                            -----------------------


                                                     Nine Months Ended  
                                                     -----------------
                                              09/30/98               09/30/97
                                              --------               --------
                                            (Unaudited)           (Unaudited)

Sources of cash:
  Receipts from purchasers of Units
  Of Beneficial Interest (Note 3)         $121,258,890             $ 96,780,783



  Dividends received from

  Journal Communications                    20,962,510               20,228,469



                                           142,221,400              117,009,252

Uses of cash:
  Disbursement to sellers of
  Units of Beneficial Interest            (121,258,890)            ( 96,780,783)

     Dividends paid to holders of
     Units of Beneficial Interest         ( 20,962,510)            ( 20,228,469)

     Reduction of note payable to
     Journal Communications, Inc.         (        100)                       0
                                          -------------             ------------


Net increase (decrease) in cash           (        100)                       0

Cash at beginning of year                          100                      100
                                          -------------              -----------

Cash at September 30                      $          0               $      100
                                          -------------              -----------

                        See notes to financial statements

                                        3

<PAGE>


                                    FORM 10-Q
                         JOURNAL EMPLOYEES' STOCK TRUST


For Quarter Ended September 30, 1998               Commission file number 0-7832
                  ------------------                                      ------

                          Notes to Financial Statements
                                   (Unaudited)

l.   Organization
     ------------
     The  only  business  of  Journal  Employees'  Stock  Trust  (Trust),  under
     agreement  dated May 15, 1937, as amended,  is the record holding of common
     stock of Journal Communications, Inc. ("Company"), the issuance of Units of
     Beneficial Interest in such shares ("Units"), and in limited instances, the
     voting of shares of the  Company's  common  stock  held by it. The Trust is
     administered by five trustees who are  officer/directors of the Company and
     receive no remuneration for services  performed for the Trust. The trustees
     are required to distribute all Trust income (consisting solely of dividends
     paid by the Company),  less such amounts as the trustees deem necessary for
     payment of administrative  expenses,  as soon as practicable after receipt.
     Since its  origination,  substantially  all expenses of the Trust have been
     paid by the Company, and cash dividends payable to the Trust have been paid
     directly to the  unitholders by the Company.  The Trust  distributes all of
     its income and, therefore, pays no income taxes under applicable income tax
     codes.

2.   Common Stock of the Company
     ---------------------------
                  
     Upon deposit by the Company of shares of common  stock,  the Trust issues a
     like number of Units and the Company  offers such Units to employees of the
     Company ("Employees").  Sales of Units by the Trust are made at the formula
     price determined in accordance with the Trust Agreement.

3.   Unitholders' Sales of Units of Beneficial Interest
     --------------------------------------------------

     Unitholders  may  sell  all or a  portion  of  their  Units  only to  other
     Employees  designated  by the  President of the Company or,  under  certain
     circumstances, to shareholders of the Company, at the current formula price
     under the terms and conditions of the Trust Agreement. If the Units are not
     sold in this  manner,  the  Units are  freely  transferable,  subject  to a
     five-year  right of the  Company to  purchase  the Units at any time at the
     formula price.  Payments for Units sold by Employees are deposited with the
     Trust by the purchaser and remitted by the Trust to the seller.

                                        4


<PAGE>


                                    FORM 10-Q

                         JOURNAL EMPLOYEES' STOCK TRUST



For Quarter Ended September 30, 1998               Commission file number 0-7832
                  ------------------                                      ------



                     Management's Discussion and Analysis of
                  Financial Condition and Results of Operations
                  ---------------------------------------------

Income is based solely on dividends from Journal Communications, Inc.


                                        5

<PAGE>


                                    FORM 10-Q
                         JOURNAL EMPLOYEES' STOCK TRUST



For Quarter Ended September 30, 1998               Commission file number 0-7832
                  ------------------                                      ------


                           Part II. Other Information
                           --------------------------

Item 6 - Exhibits and Reports on Form 8-K

     (b)   Reports on Form 8-K - There were no reports on Form 8-K filed
           for the nine months ended September 30, 1998.



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.




                         JOURNAL EMPLOYEES' STOCK TRUST




Date:     November 9, 1998                           By: /S/Steven Smith
                                                            Steven J. Smith
                                                            Trustee



Date:     November 9, 1998                           By:  /S/Richard A. Williams
                                                             Richard A. Williams
                                                             Trustee


                                        6