The Jobs Outlook and General Employment Enterprises, Inc. (AMEX: JOB)

According to Friday's March 5^, 2010 announcement by the Labor Department, the nation's unemployment rate remains unchanged from the previous month at 9.7 percent. The number was generally greeted as good news by the media. The Wall Street Journal's headline reported Outlook Brightens for Jobless." The Los Angeles Times headline said: "Employment outlook brightens in U.S., state." But the cheeriness overlooks the fact that most of the new jobs are largely temporary, part-time jobs. And not the types of jobs workers held before the recession.

However, this should benefit General Employment Enterprises (AMEX: JOB) as they are a provider of contract and placement staffing services for business and industry, specializing in the placement of information technology, engineering and accounting professionals. The company's placement staffing services include placing candidates into regular, full-time jobs. The company's contract staffing services include placing its professional employees on temporary assignments, under contracts with client companies. Contract workers are employees of the company, typically working at the client's location for periods of three to twelve months. The Company offers a variety of staffing solutions and alternatives to client companies including direct hire, temporary staffing and a contract-to-hire approach to hiring. As part of its services the company provides job candidate reference checking, scrutiny of candidates' work experience and background checks.

While the unemployment rate held steady at 9.7 percent in February, the percent of the workforce "employed part time for economic reasons" rose from 5.3 to 5.7 percent. They work between 1 and 34 hours per week, according to the Bureau of Labor Statistics, "because of an economic reason, such as their hours were cut back or they were unable to find full-time jobs."

The big area of job growth has been in "temporary help-services," adding 47,500 jobs in February. But many of these jobs are only part-time. They are hardly the great jobs most people are looking for, though these temporary jobs might eventually turn into full-time, permanent jobs.

All that said, there is still some bright news, though it comes from a different set of numbers than the Obama administration and media are citing. A big problem over the last year has been that about 3 million workers simply gave up looking for work and left the labor force, thus they are no longer counted as unemployed because they aren't looking for a job. Some of these discouraged workers are returning to the labor force, even if it frequently seems to be for part-time jobs. The positive news is that in February 176,000 workers rejoined the workforce, according to the Bureau of Labor Statistics Household survey, and that occurred without the unemployment rate rising.

For the period ended 12/31/09, General Employment Enterprises Inc had net revenues for the three months ended December 31, 2009 were down $915,000 (32%) from the prior year. Fortunately, the Company had cash and cash equivalents of $2,247,000 at 12/31/09. As the jobs market begins its healing process, JOBS stock price should also see better days ahead.