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 December 31, 2001

                               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:  001-05707


              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 January 31, 2002 was 5,120,776.




                 PART I - FINANCIAL INFORMATION

Item 1.  Financial Statements.

GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEET (Unaudited)
                                        December 31 September 30
(In Thousands)                                 2001         2001

ASSETS
Current assets:
Cash and equivalents                        $ 6,244      $ 7,293
Short-term investments                          497          495
Accounts receivable, less allowances
  (Dec. 2001 --$178; Sept. 2001 --$243)       2,335        2,685
Income tax refunds receivable                 1,307          948
Other current assets                            555          625

Total current assets                         10,938       12,046

Property and equipment:
Furniture, fixtures and equipment             6,689        6,697
Accumulated depreciation                     (4,137)      (3,952)

Net property and equipment                    2,552        2,745

Goodwill, net of accumulated amortization       882          888

Total assets                                $14,372      $15,679


LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accrued compensation and payroll taxes      $ 1,105      $ 1,753
Other current liabilities                       705          849

Total current liabilities                     1,810        2,602

Shareholders' equity:
Common stock, no-par value; authorized --
  20,000 shares; issued and outstanding --
  5,121 shares in December 2001 and
  5,087 shares in September 2001                 51           51
Capital in excess of stated value of shares   4,604        4,569
Retained earnings                             7,907        8,457

Total shareholders' equity                   12,562       13,077

Total liabilities and shareholders' equity  $14,372      $15,679

See notes to consolidated financial statements.



GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF INCOME (Unaudited)
                                                    Three Months
                                               Ended December 31
(In Thousands, Except Per Share)                   2001     2000

Net revenues:
Placement services                               $1,882   $5,564
Contract services                                 3,627    3,348

Net revenues                                      5,509    8,912

Operating expenses:
Cost of contract services                         2,398    2,148
Selling                                           1,304    3,458
General and administrative                        2,735    3,247

Total operating expenses                          6,437    8,853

Income (loss) from operations                      (928)      59
Interest income                                      48      194

Income (loss) before income taxes                  (880)     253
Provision (credit) for income taxes                (330)     105

Net income (loss)                                $ (550)  $  148

Net income (loss) per share                      $ (.11)  $  .03

Average number of shares                          5,104    5,087

See notes to consolidated financial statements.



GENERAL EMPLOYMENT ENTERPRISES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
                                                   Three Months
                                              Ended December 31
(In Thousands)                                     2001    2000

Operating activities:
Net income (loss)                              $   (550)$   148
Depreciation and other noncurrent items             197     196
Accounts receivable                                 350      20
Income tax refunds receivable                      (359)     --
Accrued compensation and payroll taxes             (648) (1,077)
Other current items, net                            (74)    (91)

Net cash used by operating activities            (1,084)   (804)

Investing activities:
Acquisition of property and equipment                --    (336)
Maturities of short-term investments                 --   2,000

Net cash provided by investing activities            --   1,664

Financing activities:
Exercise of stock options                            35      --

Increase (decrease) in cash and cash equivalents (1,049)    860
Cash and cash equivalents at beginning of period  7,293   7,236

Cash and cash equivalents at end of period      $ 6,244 $ 8,096

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-K for the year ended September
30, 2001.


Acquisition

On April 10, 2001, the Company completed a transaction to
purchase substantially all of the assets and business operations
of Generation Technologies, Inc. ("GenTech"), a staffing business
in Pittsburgh, Pennsylvania, specializing in information
technology professionals.

The results of GenTech's operations are included in the Company's
financial statements for periods subsequent to the date of
acquisition.  The unaudited pro forma results of operations
presented below assume that the acquisition had occurred at the
beginning of fiscal 2001:

                                            Three Months Ended
(In Thousands, Except per Share)             December 31, 2000

Net revenues                                            $9,852

Net income                                                 192

Net income per share                                       .04

This information is presented for informational purposes only.
It is not necessarily indicative of the results that would have
been achieved had the acquisition taken place at the beginning of
fiscal 2001 or of future results of operations.




Item 2.  Management's Discussion and Analysis of Financial
Condition and Results 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
professionals.  As of December 31, 2001, the Company operated 35
offices located in major metropolitan business centers in 12 states.

A summary of operating data, expressed as a percentage of
consolidated net revenues, is presented below.

                                                     Three Months
                                                Ended December 31
                                                    2001     2000
Net revenues:
Placement services                                  34.2%    62.4%
Contract services                                   65.8     37.6

Net revenues                                       100.0    100.0

Operating expenses:
Cost of contract services                           43.5     24.1
Selling                                             23.7     38.8
General and administrative                          49.6     36.4

Total operating expenses                           116.8     99.3

Income (loss) from operations                      (16.8)%    0.7%


First Quarter Results of Operations

Net Revenues

For the three months ended December 31, 2001, consolidated net
revenues were down $3,403,000 (38%) from the same period last
year.  This was due to the combination of a $3,682,000 (66%)
decrease in placement service revenues and a $279,000 (8%)
increase in contract service revenues.  As a result, the
Company's revenue mix changed significantly, as the ratio of
consolidated revenues was 34% placement to 66% contract this
year, compared with a ratio of 62% placement to 38% contract last
year.

Placement service revenues were down for the quarter because of a
63% decline in the number of placements, together with an 8%
decrease in the average placement fee.  The increase in contract
service revenues was the result of a 14% increase in the average
hourly billing rate, while billable hours declined 3%.

The Company attributes the decline in revenues to the effects of
the slowdown in the U.S. economy that has caused customers to
delay or reduce their hiring and contract staffing activities,
particularly those customers operating in the computer and
information technology field.  Preliminary government numbers
indicate that the U.S. Gross Domestic Product increased at an
annual rate of 0.2% in the quarter ended December 31, 2001.  This
compares with a decline of 1.3% in the quarter ended September
30, 2001 and a growth rate of 1.9% in the December 2000 quarter.
These statistics suggest that the economic slowdown might have
bottomed in the latest quarter.  However, the national
unemployment rate was 5.8% in December 2001, well above the 4.0%
rate in December 2000.

Management believes that the Company is well positioned to
benefit when national hiring patterns improve.  Typically when
this happens, the demand for contract staffing services is
expected to strengthen first, and the demand for full-time
placement services is expected to recover three to six months later.


Operating Expenses

Total operating expenses for the quarter were down $2,416,000
(27%) compared with the same quarter last year.

The cost of contract services was up $250,000 (12%), as a result
of the higher contract service revenues.  The gross profit margin
on contract services was 33.9% this quarter, compared with 35.8%
the prior year.

Selling expenses decreased $2,154,000 (62%) this quarter, and
they represented 23.7% of consolidated net revenues, which was
down 15.1 points from the prior year.  Commission expense was
down 67% due to the lower placement service revenues and lower
commissionable profits, while recruitment advertising expense was
59% lower than last year.

General and administrative expenses decreased $512,000 (16%) for
the quarter, and they represented 49.6% of consolidated net
revenues.  This was up 13.2 points from the same quarter last
year.  Compensation in the operating divisions decreased 18% for
the quarter, due to reductions in the size of the consulting
staff, while all other general and administrative expenses were
down 14%.  To control operating costs, the Company closed seven
unprofitable branch offices during fiscal 2001, including four
that were closed at the end of the year, and closed two branch
offices during the first quarter of fiscal 2002.  As a result of
these and other actions, the Company reduced its in-house staff
by 31% from the year-ago level.


Other Items

The effect of lower revenues resulted in a loss from operations
of $928,000 for the quarter, which was a decrease of $987,000
compared with income from operations of $59,000 for the same
quarter last year.

Interest income was down $146,000 (75%) in the quarter, due to a
combination of lower average funds available for investment and
lower average interest rates.

The effective income tax rate was 38% this quarter, down slightly
from the 42% rate the prior year.

After interest and taxes, the net loss for the quarter was
$550,000, which was a decrease of $698,000, compared with net
income of $148,000 the prior year.


Financial Condition

As of December 31, 2001, the Company had cash and short-term
investments of $6,741,000.  This was a decrease of $1,047,000
from September 30, 2001.  Net working capital at December 31,
2001 was $9,128,000, which was a decrease of $316,000 compared
with last September, and the current ratio was 6.0 to 1.

During the three months ended December 31, 2001, net cash used by
operating activities was $1,084,000.  This was primarily due to
the $550,000 net loss and a $648,000 seasonal reduction of
accrued compensation and payroll taxes.  As part of the Company's
cash conservation measures, there were no expenditures during the
quarter for property and equipment, and no cash dividends were paid.

All of the Company's office facilities are leased, and
information about future minimum lease payments is presented in
the notes to the consolidated financial statements contained in
the Company's annual report on Form 10-K for the year ended
September 30, 2001.

As of December 31, 2001, the Company had no debt outstanding, and
it had a $1,000,000 unused line of credit available.
Shareholders' equity at that date was $12,562,000, which
represented 87% of total assets.

It is not known how long the slowdown in the U.S. economy will
last or how long it will continue to have an adverse effect on
the Company's operations.  The Company's short-term priority is
to minimize the impact of the economy and to be positioned for
growth when it recovers.  Management believes that existing cash
and short-term investments will be adequate to meet the Company's
anticipated needs.


Forward-Looking Statements

As a matter of policy, the Company does not provide forecasts of
future financial performance.  However, the Company and its
representatives may from time to time make written or verbal
forward-looking statements, including statements contained in
press announcements, reports to shareholders and filings with the
Securities and Exchange Commission.  All statements which address
expectations about future operating performance and cash flows,
future events and business developments, and future economic
conditions are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995.  This
includes statements relating to business expansion plans,
expectations about revenue and earnings growth, and general
statements of optimism about the future.  These statements are
based on management's then-current expectations and assumptions.
Actual outcomes could differ significantly.  The Company and its
representatives do not assume any obligation to provide updated
information.

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, the ability of the Company to attract and
retain qualified personnel for regular full-time placement and
contract project assignments, and the ability to attract and
retain qualified corporate and branch management.



                   PART II - OTHER INFORMATION


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

Exhibits

The following exhibits are filed as part of this report:

No.   Description of Exhibit

10.01 Form of employment agreement with executive officers.

10.02 Regional Vice President Bonus Plan effective for fiscal
      years beginning on or after October 1, 2001.


Reports on Form 8-K

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:  February 1, 2002   By:  /s/ Kent M. Yauch
                          Kent M. Yauch
                          Vice President, Chief Financial Officer
                          and Treasurer
                          (Principal financial and accounting officer)