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                                     1

                         Index to Exhibits on page 29

               UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C. 20549

                                  FORM 10-K

     [X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
                         EXCHANGE ACT OF 1934 For the
                      fiscal year ended January 2, 2000

                                      OR

         [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
              SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
         For the transition period from               to
                                        -------------     --------------
                        Commission file number 0-1088

                             KELLY SERVICES, INC.
   -----------------------------------------------------------------------
            (Exact Name of Registrant as specified in its Charter)

        Delaware                                      38-1510762
 ------------------------                 -----------------------------------
 (State of Incorporation)                 (IRS Employer Identification Number)

 999 West Big Beaver Road, Troy, Michigan                             48084
 ----------------------------------------                          -----------
  (Address of Principal Executive Office)                           (Zip Code)

                                (248) 362-4444
             ----------------------------------------------------
             (Registrant's Telephone Number, Including Area Code)

       Securities Registered Pursuant to Section 12(b) of the Act: None

         Securities Registered Pursuant to Section 12(g) of the Act:
      Title of each class           Name of each exchange on which registered
        Class A Common                              NASDAQ/NMS
        Class B Common                              NASDAQ/NMS

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[ ]

Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. _X_

The aggregate market value of the Class B common stock, par value $1.00, the
only class of the registrant's securities with voting rights, held by
non-affiliates of the registrant on March 1, 2000, was $6,719,520 based upon
the closing price of $23.50 per share.

Registrant had 32,180,723 shares of Class A and 3,502,359 of Class B common
stock, par value $1.00, outstanding as of March 17, 2000.

                     Documents Incorporated by Reference
                     -----------------------------------
The proxy statement of the registrant with respect to the 2000
Annual Meeting of Stockholders is incorporated by reference in Part III.

Dated: March 28, 2000



                                      2

                                    PART I

ITEM 1.  DESCRIPTION OF BUSINESS.

     (a) General Development of Business. Registrant, a successor to the
business established by William R. Kelly in 1946, was incorporated under the
laws of Delaware on August 27, 1952. Throughout its existence, registrant has
been engaged in the business of providing staffing services to customers.
During the last fiscal year, registrant continued to provide staffing
services to a diversified group of customers.

     (b) Financial Information about Industry Segments. The Company divides
its operations into three segments: (1) U.S. Commercial Staffing, (2)
Professional, Technical and Staffing Alternatives (PTSA) and (3)
International. PTSA includes the following: Kelly Scientific Resources, Kelly
Healthcare Resources, Kelly Assisted Living Services, Inc., Automotive
Services Group, Kelly Engineering Resources, Kelly Information Technology
Resources, Kelly Law Registry (formerly The Law Registry), Kelly Financial
Resources, National Payroll Services, Kelly Management Services, Kelly
Merchandising Resources, Kelly Staff Leasing, Inc. and General Contractor
Services. The financial information concerning registrant is included in Item
8 in Part II of this filing.

     (c)  Narrative Description of Business.

          (i) Principal Services Rendered. Registrant, and its subsidiaries,
which are service organizations, provide staffing services to a diversified
group of customers through offices located in major cities of North America
(United States, Canada, Puerto Rico, and Mexico), Europe (Belgium, Denmark,
France, Germany, Ireland, Italy, Luxembourg, the Netherlands, Norway, Russia,
Spain, Sweden, Switzerland and the United Kingdom) and the Pacific Rim
(Australia and New Zealand). These services are generally furnished under the
name of Kelly Services. U.S. Commercial Staffing includes office services,
merchandising, electronic assembly, light industrial, call centers and
educational staffing services. PTSA includes technical skills related to
engineering, information technology, scientific, accounting and finance,
healthcare and management services. Staff leasing services are provided under
the name of Kelly Staff Leasing, Inc., a wholly owned subsidiary of
registrant. Home care services to those who need help with their daily living
needs and personal care are furnished under the name of Kelly Assisted Living
Services, Inc., which is a wholly owned subsidiary of registrant. Legal
staffing services are provided under the name of Kelly Law Registry (formerly
The Law Registry). Registrant performs these staffing services through its
employees by assigning them to work on the premises of registrant's
customers.

     The staffing services furnished by registrant afford economies and
flexibility in meeting uneven or peak work loads caused by such predictable
factors as vacations, inventories, month-end activities, special projects or
new promotions and such non-predictable factors as illnesses or emergencies.
When work peaks occur which cannot be handled by the customer's normal staff,
the customer can temporarily supplement regular personnel by the use of
registrant's services. The cost and inconvenience to the customer of hiring
additional employees, including advertising, interviewing, screening, testing
and training are eliminated. Also, recordkeeping is simplified because the
customer pays an hourly rate, based on hours of service furnished by
registrant.

     Registrant serves a wide cross-section of customers from industry,
commerce, the professions, government, and individuals. During recent years
approximately 200,000 customers, including the largest corporations in the
world, use registrant's services. There have been no significant changes in
the services rendered or in the markets or methods of distribution since the
beginning of registrant's fiscal year.

     Registrant operates through approximately 1,800 domestic and foreign
offices located in North America, Europe and the Pacific Rim. Each office
provides the services of one or more of the divisions or subsidiaries and are
operated directly by the registrant.

        (ii) New Services. There are no new industry segments that the
registrant is planning to enter or new service areas that will require a
material investment of assets.

        (iii) Raw Materials. Registrant is involved in a service business and
raw materials are nonexistent in the business.

        (iv) Service Marks. Registrant is the owner of numerous service
marks, which are registered with the United States Patent and Trade Mark
Office and in foreign countries.




                                      3

        (v) Seasonal Business Implications. Registrant's business is not
seasonal.

        (vi) Working Capital. Registrant believes there are no unusual or
special working capital requirements in the staffing services industry.

        (vii) Customers. The business of registrant and its subsidiaries is
not dependent upon either a single customer or a limited number of customers.

        (viii) Backlog. Backlog of orders is not material to the business of
registrant.

        (ix) Government Contracts. Although registrant conducts business
under various government contracts, that portion of registrant's business is
not significant.

        (x) Competition. Registrant is one of the largest global suppliers of
staffing services. In the United States, there are less than 100 national
competitors, and approximately 20,000 organizations locally compete in
varying degrees in different localities where registrant operates local
offices. In foreign markets there are several similar levels of global,
national and local competitors. The most significant competitive factors
worldwide are geographic coverage, breadth of service, service quality and
price.

        (xi) Research Activities. Registrant's expenditure for research and
the number of people involved are not material.

        (xii) Environmental Matters. Registrant is involved in a service
business and is not generally affected by federal, state and local provisions
regulating the discharge of materials into the environment.

        (xiii) Employees. Registrant and subsidiaries employ on a full time
basis approximately 1,100 persons at its headquarters in Troy, Michigan, and
approximately 6,300 persons in branch offices operated directly by
registrant. Registrant employed in the last fiscal year approximately 750,000
men and women for temporary periods. As the employer of its temporary work
force, registrant is responsible for and pays Social Security (or its
equivalent outside the United States), Medicare and health care taxes,
workers' compensation, unemployment compensation taxes, liability insurance
and other similar costs, and is responsible for payroll deductions of Social
Security, Medicare and income taxes. Although the services may be provided in
the office of the registrant's customer, registrant remains the employer of
its temporary employees with responsibility for their assignment and
reassignment.

     (d) Foreign Operations. For information regarding sales, earnings from
operations and long-lived assets by domestic and foreign operations,
reference is made to the information presented in the Segment Disclosures
note to the consolidated financial statements presented in Item 8 in Part II
of this report.

ITEM 2. PROPERTIES.

     Registrant owns the premises in Troy, Michigan, from which its
headquarters, subsidiaries and divisional offices are presently operated.
Registrant purchased the original headquarters building in Troy, Michigan, in
1977 and has expanded operations into adjacent buildings that were purchased
in 1991 and 1997. The combined usable floor space for the headquarters
complex approximates 230,000 square feet, plus leased space nearby of 93,000
square feet. The buildings are in good condition, are considered to be
adequate for the uses to which they are being put and are in regular use. In
addition, registrant owns vacant land in Troy and northern Oakland County,
Michigan, for future expansion. Registrant's branch offices are conducted
from premises which are leased. A majority of the leases are for fixed terms,
from one to five years. Registrant owns virtually all office furniture and
equipment used in its headquarters building and branch offices.

ITEM 3. LEGAL PROCEEDINGS.

     Claims against the registrant are not considered by management and
counsel to be material.



                                      4

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

     There were no matters submitted to a vote of security holders in the
fourth quarter of 1999.


                                   PART II

ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER
        MATTERS.

     Kelly Services' stock is traded over-the-counter in the NASDAQ National
Market System (NMS). The high and low selling prices for the Class A common
stock and Class B common stock as quoted by the National Association of
Securities Dealers, Inc. and the dividends paid on the common stock for each
quarterly period in the last two fiscal years are reported below:

                                Per share amounts (in dollars)
                        ----------------------------------------------
                         First   Second     Third     Fourth
                        Quarter  Quarter   Quarter    Quarter     Year
                        ------   ------    -------    -------     ----
1999
  Class A common
     High ..........    $32.50   $32.50    $31.63     $30.75    $32.50
     Low ...........     24.13    25.00     25.38      22.88     22.88

  Class B common
     High ..........     29.38    29.75     30.88      29.88     30.88
     Low ...........     28.25    26.25     23.75      24.00     23.75

  Dividends ........       .23      .24       .24        .24       .95

1998
  Class A common
     High ..........    $37.75   $38.50    $35.63     $35.13    $38.50
     Low ...........     29.25    30.25     25.63      23.75     23.75

  Class B common
     High ..........     58.75    38.00     36.25      33.50     58.75
     Low ...........     29.50    34.00     29.00      28.75     28.75

  Dividends ........       .22      .23       .23        .23       .91



The number of holders of record of the Class A and Class B common stock, par
value $1.00, of registrant were 947 and 210, respectively, as of March 17,
2000.



                                      5

ITEM 6.  SELECTED FINANCIAL DATA.

     The following table summarizes selected financial information of Kelly
Services, Inc. and its subsidiaries for each of the most recent six fiscal
years. This table should be read in conjunction with other financial
information of the registrant including "Management's Discussion and Analysis
of Financial Condition and Results of Operations" and financial statements
included elsewhere herein.




                                                        (1)
(In millions except
   per share amounts)                     1999      1998         1997        1996        1995        1994
- ----------------------------------        ----      ----         ----        ----        ----        ----
                                                                               
Sales of services ................   $ 4,269.1   $ 4,092.3   $ 3,852.9   $ 3,302.3   $ 2,689.8   $ 2,362.6
Earnings before taxes ............       143.7       143.6       137.0       122.9       113.3        98.5
Net earnings .....................        85.1        84.7        80.8        73.0        69.5        61.1

Per share data:
     Basic earnings per share ....        2.37        2.24        2.12        1.92        1.83        1.61
     Diluted earnings per share ..        2.36        2.23        2.12        1.91        1.83        1.61

Dividends per share
     Classes A and B common ......        0.95        0.91        0.87        0.83        0.78        0.70

Working capital ..................       284.9       293.4       363.6       336.6       316.0       315.8
Total assets .....................     1,033.7       964.2       967.2       838.9       718.7       642.4


(1) Fiscal year included 53 weeks.



ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
        RESULTS OF OPERATIONS.

General

     Kelly Services' fiscal 1999, a normal 52-week year, contained four
13-week quarters. However, fiscal 1998, a 53-week year, included three
13-week quarters and a 14-week fourth quarter. To provide a better
understanding of operating results, sales comparisons are provided two ways:
First, 1999 actual is compared to the audited 53-week 1998, and second, as
supplementary disclosure, 1999 actual is compared to the unaudited, adjusted
52-week 1998.

Results of Operations
1999 versus 1998

     Sales for the 52-week fiscal year reached a record $4.269 billion in
1999, an increase of 4.3% compared to the $4.092 billion for the 53-week
fiscal year in 1998. Sales increased 5.6% on an adjusted basis versus the
52-week 1998 period. Sales in the U.S. Commercial Staffing segment declined
slightly by 0.7% compared to the 53-week 1998, while Professional, Technical
and Staffing Alternatives (PTSA) sales grew by 8.5% compared to last year.
International sales grew by 12.4% as compared to 1998. International sales
represented 25% of total Company sales in 1999, as compared to 24% in 1998.

     The 1999 gross profit rate averaged 17.9%, which was consistent with the
17.9% rate earned in 1998.

     Selling, general and administrative expenses expressed as a percentage
of sales were 14.6% as compared to 14.4% last year. The increase in expenses
as a percentage of sales is attributable to the Year 2000 Project expenses
and increased depreciation associated with the deployment of the Oracle
finance and administration systems, and proprietary front office branch
automation technology.

     Earnings from operations totaled $144.0 million, a 2.4% increase from
the $140.6 million reported for the 53-week 1998. Earnings were 3.4% of sales
as compared to 3.4% for the 53-week period in 1998.

     Net interest expense was $0.2 million compared to last year's net
interest income of $3.0 million. The decrease is attributable to lower cash
balances than a year ago, as a result of a 30% increase in our capital
expenditures, and $76 million utilized in the share repurchase program, which
was completed midway through the fourth quarter of 1998.



                                      6

     The effective income tax rate was 40.8%, slightly lower than last year's
41.0% rate, reflecting reductions in the Company's consolidated state and
local tax rate.

     Net earnings totaled a record $85.1 million in 1999, a 0.5% increase
over the 53-week 1998. The rate of return on sales was 2.0%, compared with
last year's 2.1% rate. Basic earnings per share were $2.37 or 5.8% over last
year. Diluted earnings per share for 1999 were $2.36, a 5.8% increase
compared to $2.23 for the 53-week 1998.

Results of Operations
1998 versus 1997

     Sales for the 53-week fiscal year reached $4.092 billion in 1998, an
increase of 6.2% compared to the $3.853 billion for the 52-week fiscal year
in 1997. On an adjusted 52-week basis for 1998, sales increased 4.9% over
1997. Sales in the U.S. Commercial Staffing segment grew by 2.8%, while
Professional, Technical and Staffing Alternatives (PTSA) sales grew by 8.4%
compared to last year. International sales grew by 12.9% as compared to 1997.
International sales represented 24% of total Company sales in 1998, as
compared to 22% in 1997.

     The 1998 gross profit rate averaged 17.9% versus 17.7% in 1997. The
improvement was principally related to an increased mix of fee-based
permanent placement income and an increase in the share of our international
business as a percentage of total revenue. The international component
carries a higher average gross profit rate than U.S. commercial staffing.

     Selling, general and administrative expenses expressed as a percentage
of sales were 14.4% as compared to 14.2% in 1997. The rate of growth of
expenses principally reflects increased spending for the Year 2000 Project
and information technology programs.

     Earnings from operations totaled $140.6 million, a 3.6% increase from
the $135.8 million reported in 1997. Earnings were 3.4% of sales as compared
to 3.5% in 1997.

     Net interest income was $3.0 million, a 147% increase versus 1997. The
increase in investment income related to an improved cash and investment
position as compared to 1997.

     The effective income tax rate was 41.0% in both 1998 and 1997.

     Net earnings totaled $84.7 million in 1998, a 4.9% increase over 1997.
The rate of return on sales was 2.1% in both 1998 and 1997. Basic earnings
per share were $2.24 or a 5.7% increase over 1997. Diluted earnings per share
were $2.23 or 5.2% higher than 1997.

Liquidity and Capital Resources

     Cash and short-term investments totaled $60 million at the end of 1999,
down from the $72 million at year-end 1998. Year-end cash was slightly lower
than last year, principally as a result of the increased accounts receivable
and the 30% increase in our capital expenditure program.

     Accounts receivable totaled $602 million at year end as compared to $585
million at year-end 1998. Strong accounts receivable management during the
year reduced global days sales outstanding to 51 days, down from 53 days in
1998.

     Short-term debt totaled $47 million, which is virtually unchanged from
$48 million at year-end 1998. All short-term borrowings are foreign currency
denominated and support the growth of the Company's international working
capital position.

     The Company's working capital position was $285 million at the end of
1999, a decrease of $9 million from 1998 and $79 million from 1997. The
current ratio was 1.6 in 1999, 1.7 in 1998 and 1.9 in 1997. The lower ratio
in 1999 and 1998 as compared to 1997 was principally a result of the cash
utilized in the share repurchase program, as well as the growth of the
Company's capital expenditure program.

     Assets totaled $1.034 billion in 1999 compared to $964 million in 1998.
In 1997, assets totaled $967 million. The return on average assets was 8.5%
in 1999 and 8.8% in 1998. In 1997 the return was 8.9%.



                                      7

     Stockholders' equity was $582 million in 1999, which represents 8.3%
growth over 1998. In 1998 stockholders' equity was 3.9% below 1997. The
return on average stockholders' equity was 15.2% in 1999, 15.4% in 1998 and
15.0% in 1997. Dividends paid per common share were $.95 in 1999, an increase
of 4.4% over 1998 dividends of $.91 per share. Dividends in 1997 were $.87
per share.

     The Company's financial position remains very strong. The Company
continues to carry no long-term debt and expects to meet its growth
requirements principally through cash flow from operations.

Year 2000 Systems Update

     In 1995, the Company embarked upon a global Year 2000 Project. The
project scope included hardware, software and embedded chip technology. A
formal Project Office was established with complete executive sponsorship and
funding in February 1997. This initiated a global business system strategy
that included a wide-scale Oracle implementation of business and financial
systems, plus major enhancements to branch automation systems. Included in
these initiatives is the remediation of Year 2000 noncompliant systems.

     The Company's ability to deliver services and products to its customers
on a timely basis has not been impacted by any problems arising as a result
of the Year 2000 issues. To date, the Company experienced no failures of any
mission critical applications, nor were there any reports of any significant
interruptions to the Company's business operations as a result of the failure
of its own computer systems or those of a third party.

Year 2000 Costs

     Total cost of the Year 2000 remediation project was $20.6 million,
slightly below our original estimate of $21 million. The total amount
incurred for 1999 approximated $11 million. Related expenses for 1998 were $8
million, and $1 million was expended in 1997.

     The total cost of the Year 2000 project is expected to be at least
somewhat offset by the benefits to be realized by the Company. These include:
enhanced functionality at the branch level; a worldwide inventory of
information technology and systems; a high-level documentation of business
processes used by strategic business units; rationalization and
standardization of diverse information systems; upgrades and standardization
of desktop computing; upgrade of wide area network to remote business units;
improved software quality assurance; and clean-up and documentation of older
program code.

Market Risk-Sensitive Instruments and Positions

     The market risk inherent in the Company's market risk-sensitive
instruments and positions is the potential loss arising from adverse changes
in foreign currency exchange rates and interest rates. Foreign currency
exchange risk is mitigated by the usage of the Company's multi-currency line
of credit. This credit facility can be used to borrow in the local currencies
that can mitigate the exchange rate risk resulting from foreign
currency-denominated assets fluctuating in relation to the U.S. dollar.

     The Company's holdings and positions in market risk-sensitive
instruments do not subject the Company to material risk exposures.

Adoption of the Euro

     A segment of the global business system implementation is devoted to
changes necessary to deal with the introduction of a European single currency
(the Euro). The transition period for implementation is January 1, 1999
through January 1, 2002.

     The Company does not expect that introduction and use of the Euro will
result in any material increase in costs.

Forward-Looking Statements

     Except for the historical statements and discussions contained herein,
statements contained in this report relate to future events that are subject
to risks and uncertainties, such as: competition, changing market and
economic conditions, currency fluctuations, changes in laws and regulations,
the Company's ability to effectively implement and manage its information
technology programs and other factors discussed in the report and in the
Company's filings with the Securities and Exchange Commission. Actual results
may differ materially from any projections contained herein.



                                      8

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

     The financial statements and supplementary data required by this Item
are set in the accompanying index on page 11 of this filing and are presented
in pages 12-28.

ITEM 9. DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
        DISCLOSURE.

     None.

                                   PART III

     Information required by Part III with respect to Directors and Executive
Officers of the registrant, except as set forth under the title "Executive
Officers of the Registrant" which is included on page 8, (Item 10), Executive
Compensation (Item 11), Security Ownership of Certain Beneficial Owners and
Management (Item 12), and Certain Relationships and Related Transactions
(Item 13) is to be included in a definitive proxy statement filed by the
registrant not later than 120 days after the close of its fiscal year and
such proxy statement, when filed, is incorporated herein by reference.


ITEM 10. EXECUTIVE OFFICERS OF THE REGISTRANT.



                                         Served as an         Business Experience
      Name/Office                 Age    Officer Since (1)    During Last 5 Years
- ------------------------          ---    -----------------    -------------------------
                                                     
Terence E. Adderley                66          1961           Served as officer of registrant.
Chairman, President and
 Chief Executive Officer

Carl T. Camden                     45          1995           Served as officer of registrant since
Executive Vice President                                      April, 1995.  From 1993 served as
                                                              Senior Vice President at Key Corp.,
                                                              the parent of Key Bank and Society
                                                              Bank Groups.

Michael L. Durik                   51          1999           Served as officer of registrant since
Senior Vice President                                         July, 1999.  From 1993 was owner of
                                                              MLD Management, an independent
                                                              consulting firm.

William K. Gerber                  46          1998           Served as officer of registrant since April,
Executive Vice President and                                  1998.  Prior thereto, served as Vice President
  Chief Financial Officer                                     of Finance at The Limited, Inc.

Arlene Grimsley                    52          1994           Served as officer of registrant.
Senior Vice President

George M. Reardon                  52          1998           Served as officer of registrant since
Senior Vice President,                                        June, 1998.  From 1994, served in
  General Counsel and Secretary                               private practice in Houston, Texas.

Tommi A. White                     49          1993           Served as officer of registrant.
Executive Vice President


(1) Each officer serves continuously until termination of employment or
removal by the Board of Directors.




                                      9


                                   PART IV


ITEM 14.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.

(a) The following documents are filed as part of this report:

      (1)  Financial statements -

           Report of Independent Accountants

           Statements of Earnings for the three fiscal years ended January 2,
           2000

           Statements of Cash Flows for the three fiscal years ended
           January 2, 2000

           Balance Sheets at January 2, 2000, January 3, 1999 and
           December 28, 1997

           Statements of Stockholders' Equity for the three fiscal years
           ended January 2, 2000

           Notes to Financial Statements

      (2)  Financial Statement Schedule -

           For the three fiscal years ended January 2, 2000:

           Schedule II - Valuation Reserves

           All other schedules are omitted because they are not applicable
           or the required information is shown in the financial statements
           or notes thereto.

      (3)  The Exhibits are listed in the Index to Exhibits Required by
           Item 601 of Regulation S-K at Item (c) below and included at
           page 29 which is incorporated herein by reference.

No additional financial information has been provided for the registrant as
an individual company since the total amount of net assets of subsidiaries
which are restricted as to transfer to the registrant through intercompany
loans, advances or cash dividends does not exceed 25 percent of total
consolidated net assets at January 2, 2000.

(b) No reports on Form 8-K were filed during the last quarter of the period
    covered by this report.

(c) The Index to Exhibits and required Exhibits are included following the
    Financial Statement Schedule beginning at page 29 of this filing.

(d) The Index to Financial Statements and Supplemental Schedule is included
    following the signatures beginning at page 11 of this filing.



                                     10

                                  SIGNATURES

      Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

Date:  March 28, 2000                   KELLY SERVICES, INC.
                                        --------------------
                                              Registrant
                                        By  /s/ W. K. Gerber
                                        ----------------------------
                                        W. K. Gerber
                                        Executive Vice President and
                                           Chief Financial Officer

      Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.

Date:  March 28, 2000                *  T. E. Adderley
                                     --------------------------------------
                                     T. E. Adderley
                                     Chairman, President, Chief Executive
                                        Officer and Director
                                     (Principal Executive Officer)

Date:  March 28, 2000                *  C. V. Fricke
                                     --------------------------------------
                                     C. V. Fricke
                                     Director

Date:  March 28, 2000                *  M. A. Fay, O.P.
                                     --------------------------------------
                                     M. A. Fay, O.P.
                                     Director

Date:  March 28, 2000                *  V. G. Istock
                                     --------------------------------------
                                     V. G. Istock
                                     Director

Date:  March 28, 2000                *  B. J. White
                                     --------------------------------------
                                     B. J. White
                                     Director

Date:  March 28, 2000                /s/ W. K. Gerber
                                     --------------------------------------
                                     W. K. Gerber
                                     Executive Vice President and
                                       Chief Financial Officer
                                     (Principal Financial Officer and
                                      Principal Accounting Officer)

Date:  March 28, 2000                *By  /s/ W. K. Gerber
                                     --------------------------------------
                                     W. K. Gerber
                                     Attorney-in-Fact



                                     11

                      INDEX TO FINANCIAL STATEMENTS AND
                            SUPPLEMENTAL SCHEDULE

                    Kelly Services, Inc. and Subsidiaries



                                                                Page Reference
                                                                 in Report on
                                                                   Form 10-K
                                                                --------------

Report of Independent Accountants                                     12

Statements of Earnings for the three fiscal years
   ended January 2, 2000                                              13

Statements of Cash Flows for the three fiscal years
   ended January 2, 2000                                              14

Balance Sheets at January 2, 2000, January 3, 1999 and
   December 28, 1997                                                  15

Statements of Stockholders' Equity for the three fiscal
   years ended January 2, 2000                                        16

Notes to Financial Statements                                       17 - 27

Financial Statement Schedule - Schedule II - Valuation Reserves       28



                                     12

                      REPORT OF INDEPENDENT ACCOUNTANTS

To the Stockholders and Board of Directors,
Kelly Services, Inc.


In our opinion, the accompanying financial statements listed in the index
appearing under Item 14(a)1 on page 11 present fairly, in all material
respects, the financial position of Kelly Services, Inc. and its subsidiaries
at January 2, 2000, January 3, 1999 and December 28, 1997, and the results of
their operations and their cash flows for the years then ended, in conformity
with accounting principles generally accepted in the United States. In
addition, in our opinion, the financial statement schedule listed in the
index appearing under Item 14(a)2 on page 11 presents fairly, in all material
respects, the information set forth therein when read in conjunction with the
related financial statements. These financial statements and financial
statement schedule are the responsibility of the Company's management; our
responsibility is to express an opinion on these financial statements and
financial statement schedule based on our audits. We conducted our audits of
these statements in accordance with auditing standards generally accepted in
the United States, which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements, assessing
the accounting principles used and significant estimates made by management,
and evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for the opinion expressed above.



/s/ PricewaterhouseCoopers LLP
- --------------------------------------------
PricewaterhouseCoopers LLP
Detroit, Michigan
January 27, 2000




                                     13

                            STATEMENTS OF EARNINGS
                    Kelly Services, Inc. and Subsidiaries


                                                      (1)
                                       1999           1998         1997
                                       ----           ----         ----
                                      (In thousands of dollars except
                                                per share items)

Sales of services ..............   $ 4,269,113    $ 4,092,251   $ 3,852,935

Cost of services ...............     3,503,052      3,360,976     3,171,589
                                   -----------    -----------   -----------

Gross profit ...................       766,061        731,275       681,346

Selling, general and
  administrative expenses ......       622,110        590,659       545,582
                                   -----------    -----------   -----------

Earnings from operations .......       143,951        140,616       135,764

Interest (expense) income, net..          (241)         2,999         1,216
                                   -----------    -----------   -----------

Earnings before income taxes ...       143,710        143,615       136,980

Income taxes ...................        58,600         58,900        56,200
                                   -----------    -----------   -----------

Net earnings ...................   $    85,110    $    84,715   $    80,780
                                   ===========    ===========   ===========

Basic earnings per share .......   $      2.37    $      2.24   $      2.12

Diluted earnings per share .....   $      2.36    $      2.23   $      2.12

Dividends per share ............   $       .95    $       .91   $       .87

Average shares outstanding
 (thousands):
  Basic ........................        35,854         37,745        38,099
  Diluted ......................        36,030         37,945        38,191


See accompanying Notes to Financial Statements.
(1)  Fiscal year included 53 weeks.




                                     14



                           STATEMENTS OF CASH FLOWS
                    Kelly Services, Inc. and Subsidiaries

                                                                    (1)
                                                        1999        1998          1997
                                                        ----        ----          ----
                                                          (In thousands of dollars)
                                                                     
Cash flows from operating activities:
   Net earnings .................................   $  85,110    $  84,715    $  80,780
   Noncash adjustments:
     Depreciation and amortization ..............      36,238       28,865       28,341
     Changes in certain working capital
       components ...............................      (6,923)       2,239       38,751
                                                    ---------    ---------    ---------

        Net cash from operating activities ......     114,425      115,819      147,872

Cash flows from investing activities:
   Capital expenditures .........................     (76,696)     (59,089)     (39,710)
   Short-term investments .......................       6,051       55,232      (39,266)
   Increase in intangibles and other assets .....     (10,872)     (11,133)      (7,168)
   Acquisition of companies, net of
     cash received ..............................      (5,557)      (3,385)      (1,336)
                                                    ---------    ---------    ---------

        Net cash from investing activities ......     (87,074)     (18,375)     (87,480)

Cash flows from financing activities:
   (Decrease) increase in short-term borrowings..        (419)      (7,329)      13,342
   Dividend payments ............................     (34,041)     (34,237)     (33,150)
   Exercise of stock options, restricted
     stock awards and other .....................       1,893        3,180        2,698
   Purchase of treasury stock ...................        (551)     (75,949)        --
                                                    ---------    ---------    ---------

        Net cash from financing activities ......     (33,118)    (114,335)     (17,110)

Net change in cash and equivalents ..............      (5,767)     (16,891)      43,282
Cash and equivalents at beginning of year .......      59,799       76,690       33,408
                                                    ---------    ---------    ---------

Cash and equivalents at end of year .............   $  54,032    $  59,799    $  76,690
                                                    =========    =========    =========



See accompanying Notes to Financial Statements.
(1)  Fiscal year included 53 weeks.




                                     15



                                BALANCE SHEETS
                    Kelly Services, Inc. and Subsidiaries


                                                 1999          1998           1997
                                                 ----          ----           ----
                                                     (In thousands of dollars)
                                                                
ASSETS
Current Assets:
  Cash and equivalents ...................   $   54,032    $   59,799    $   76,690
  Short-term investments .................        6,018        12,069        67,301
  Accounts receivable, less allowances
     of $13,575, $13,035 and $12,375,
     respectively ........................      602,485       584,653       572,134
  Prepaid expenses and other current
     assets ..............................       22,801        15,012        12,892
  Deferred taxes .........................       50,832        48,343        41,955
                                             ----------    ----------    ----------
  Total current assets ...................      736,168       719,876       770,972

Property and Equipment:
  Land and buildings .....................       49,458        44,135        44,405
  Equipment, furniture and
    leasehold improvements ...............      231,654       179,707       130,472
  Accumulated depreciation ...............      (94,112)      (77,491)      (62,144)
                                             ----------    ----------    ----------
  Total property and equipment ...........      187,000       146,351       112,733

Intangibles and Other Assets .............      110,523        98,020        83,524
                                             ----------    ----------    ----------
Total Assets .............................   $1,033,691    $  964,247    $  967,229
                                             ==========    ==========    ==========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
  Short-term borrowings ..................   $   47,210    $   47,629    $   54,958
  Accounts payable .......................       73,516        79,089        60,408
  Payroll and related taxes ..............      215,706       195,670       197,092
  Accrued insurance ......................       65,881        66,830        61,077
  Income and other taxes .................       49,005        37,265        33,865
                                             ----------    ----------    ----------
  Total current liabilities ..............      451,318       426,483       407,400

Stockholders' Equity:
 Capital stock, $1 par value
   Class A common stock, shares issued
   36,602,210 in 1999, 36,540,770 in
   1998 and 36,537,584 in 1997 ...........       36,602        36,541        36,538

   Class B common stock, shares issued
   3,513,656 in 1999, 3,575,096 in
   1998 and 3,578,282 in 1997 ............        3,514         3,575         3,578

 Treasury stock, at cost
   Class A common stock, 4,234,524 shares
   in 1999, 4,301,321 in 1998 and
   1,947,156 in 1997 .....................      (80,538)      (81,669)       (6,029)

   Class B common stock, 7,767 shares
   in 1999 and 1998 and 5,830 in 1997 ....         (248)         (248)         (185)

  Paid-in capital ........................       15,761        14,844        10,980
  Earnings invested in the business ......      623,564       572,517       522,039
  Accumulated foreign currency
    adjustments ..........................      (16,282)       (7,796)       (7,092)
                                             ----------    ----------    ----------

  Total stockholders' equity .............      582,373       537,764       559,829
                                             ----------    ----------    ----------

Total Liabilities and Stockholders'
  Equity .................................   $1,033,691    $  964,247    $  967,229
                                             ==========    ==========    ==========


See accompanying Notes to Financial Statements.




                                     16



                      STATEMENTS OF STOCKHOLDERS' EQUITY
                    Kelly Services, Inc. and Subsidiaries

                                                                   (1)
                                                      1999         1998          1997
                                                      ----         ----          ----
                                                        (In thousands of dollars)
                                                                    
Capital Stock
   Class A common stock
      Balance at beginning of year .............   $  36,541    $  36,538    $  36,527
      Conversions from Class B .................          61            3           11
                                                   ---------    ---------    ---------
      Balance at end of year ...................      36,602       36,541       36,538

   Class B common stock
      Balance at beginning of year .............       3,575        3,578        3,589
      Conversions to Class A ...................         (61)          (3)         (11)
                                                   ---------    ---------    ---------
      Balance at end of year ...................       3,514        3,575        3,578

Treasury Stock
   Class A common stock
      Balance at beginning of year .............     (81,669)      (6,029)      (6,012)
      Exercise of stock options, restricted
        stock awards and other .................       1,438          144          (17)
      Treasury stock issued for acquisition ....         244          102         --
      Purchase of treasury stock ...............        (551)     (75,886)        --
                                                   ---------    ---------    ---------
      Balance at end of year ...................     (80,538)     (81,669)      (6,029)

   Class B common stock
      Balance at beginning of year .............        (248)        (185)        (185)
      Purchase of treasury stock ...............        --            (63)        --
                                                   ---------    ---------    ---------
      Balance at end of year ...................        (248)        (248)        (185)

Paid-in Capital
      Balance at beginning of year .............      14,844       10,980        8,265
      Exercise of stock options, restricted
         stock awards and other ................         808        3,036        2,715
      Treasury stock issued for acquisition ....         109          828         --
                                                   ---------    ---------    ---------
      Balance at end of year ...................      15,761       14,844       10,980

Earnings Invested in the Business
      Balance at beginning of year .............     572,517      522,039      474,409
      Net earnings .............................      85,110       84,715       80,780
      Dividends ................................     (34,063)     (34,237)     (33,150)
                                                   ---------    ---------    ---------
      Balance at end of year ...................     623,564      572,517      522,039

Accumulated Foreign Currency Adjustments
      Balance at beginning of year .............      (7,796)      (7,092)         306
      Equity adjustment for foreign currency ...      (8,486)        (704)      (7,398)
                                                   ---------    ---------    ---------
      Balance at end of year ...................     (16,282)      (7,796)      (7,092)
                                                   ---------    ---------    ---------

Stockholders' Equity at end of year ............   $ 582,373    $ 537,764    $ 559,829
                                                   =========    =========    =========

Comprehensive Income
      Net earnings .............................   $  85,110    $  84,715    $  80,780
      Other comprehensive income - Foreign
        currency adjustments ...................      (8,486)        (704)      (7,398)
                                                   ---------    ---------    ---------
      Comprehensive Income .....................   $  76,624    $  84,011    $  73,382
                                                   =========    =========    =========


See accompanying Notes to Financial Statements.
(1)  Fiscal year included 53 weeks.




                                     17

                        NOTES TO FINANCIAL STATEMENTS
                    Kelly Services, Inc. and Subsidiaries
          (In thousands of dollars except share and per share items)

1.  Summary of Significant Accounting Policies

     The Company's fiscal year ends on the Sunday nearest to December 31. The
three most recent years ended on January 2, 2000 (1999), January 3, 1999
(1998) and December 28, 1997 (1997).

     The financial statements consolidate the accounts and operations of the
Company and its subsidiaries, all of which are wholly owned, after
elimination of all intercompany accounts and transactions.

     The Company divides its operations into three segments: (1) U.S.
Commercial Staffing, (2) Professional, Technical and Staffing Alternatives
and (3) International. The accounts of the Company's foreign operations are
translated at appropriate rates of exchange. Revenues, costs and expenses of
foreign subsidiaries are translated to U.S. dollars at average-period
exchange rates. Assets and liabilities of foreign subsidiaries are translated
to U.S. dollars at year-end exchange rates with the effects of these
translation adjustments being reported as a separate component of accumulated
other comprehensive income in stockholders' equity.

     Foreign operations are conducted in Australia, Belgium, Canada, Denmark,
France, Germany, Ireland, Italy, Luxembourg, Mexico, the Netherlands, New
Zealand, Norway, Puerto Rico, Russia, Spain, Sweden, Switzerland and the
United Kingdom. Refer to the Segment Disclosures footnote for additional
information.

     Revenue from sales of services is recognized as services are provided by
the temporary, contract or leased employees. Revenue from permanent placement
services is recognized at the time the permanent placement candidate begins
full-time employment.

     The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets, liabilities, revenues
and expenses. Actual results could differ from those estimates.

     Certain prior year amounts have been reclassified to conform with the
current presentation.

2.  Current Assets

     Cash and equivalents are stated at cost, which approximates market.
Included are highly liquid debt instruments with original maturities of three
months or less.

     Short-term investments are debt instruments having original maturities
of more than three months and are classified as available for sale. Of these
investments, federal, state and local government obligations comprised
approximately 60% in 1999, 80% in 1998 and 70% in 1997. Short-term
investments due within one year totaled $5,800 in 1999 and $64,000 in 1997,
with the balance due within two years. The entire short-term investments
balance in 1998 was due within one year. The difference between carrying
amounts and market was not material at January 2, 2000, January 3, 1999 and
December 28, 1997.

Interest income was $2,272, $6,206 and $4,390, respectively, for the years
1999, 1998 and 1997.



                                     18

                  NOTES TO FINANCIAL STATEMENTS (continued)
                    Kelly Services, Inc. and Subsidiaries
          (In thousands of dollars except share and per share items)

3.  Supplemental Cash Flow Information

     Changes in certain working capital components, as disclosed in the
statements of cash flows, for the years 1999, 1998 and 1997 were as follows:

                                                 1999      1998        1997
                                                 ----      ----        ----

Increase in accounts receivable               $(26,972)  $(12,712)  $(27,444)
Increase in prepaid expenses and
  other current assets                          (9,138)    (2,277)    (1,499)
Increase in deferred taxes                      (2,655)    (6,389)   (11,732)
Increase (decrease) in accounts payable         (3,059)    16,582     16,094
Increase (decrease) in payroll and
  related taxes                                 22,575     (1,905)    47,319
Increase (decrease) in accrued insurance          (924)     5,755      7,981
Increase in income and other taxes              13,250      3,185      8,032
                                              --------   --------   --------

Total                                         $ (6,923)  $  2,239   $ 38,751
                                              ========   ========   ========

     Cash flows from short-term investments for 1999, 1998 and 1997 were as
follows:

                           1999          1998           1997
                           ----          ----           ----
Sales/Maturities        $  905,326    $ 1,645,815    $ 1,749,954
Purchases                 (899,275)    (1,590,583)    (1,789,220)
                        ----------    -----------    -----------
Total                   $    6,051    $    55,232    $   (39,266)
                        ==========    ===========    ===========

4.  Property and Equipment

     Properties are stated at cost and include expenditures for additions and
major improvements. The Company capitalizes professional fees and internal
payroll costs incurred in the development of software for internal use in
accordance with Statement of Position 98-1. Fully depreciated assets are
eliminated from the accounts. For financial reporting purposes, assets are
depreciated over their estimated useful lives, principally by the
straight-line method. Estimated useful lives range from 15 to 45 years for
land improvements, buildings and building improvements, 5 years for
equipment, furniture and leasehold improvements and 3 to 12 years for
computer hardware and software. Depreciation expense was $33,900 for 1999,
$25,400 for 1998 and $22,900 for 1997.

The Company conducts its field operations primarily from leased facilities.
The following is a schedule by fiscal year of future minimum lease
commitments as of January 2, 2000:


     Fiscal year:
         2000                  $ 43,400
         2001                    30,000
         2002                    22,000
         2003                    14,800
         2004                     8,600
         Later years             16,400
                               --------
         Total                 $135,200
                               ========

Lease expense for 1999, 1998 and 1997 amounted to $43,100, $38,600 and
$35,900, respectively.



                                     19

                  NOTES TO FINANCIAL STATEMENTS (continued)
                    Kelly Services, Inc. and Subsidiaries
          (In thousands of dollars except share and per share items)

5. Intangibles and Other Assets

     Intangibles and other assets include goodwill of $67,900, $64,100 and
$56,000 at year-ends 1999, 1998 and 1997, respectively. Goodwill, which
represents the excess of cost over net assets of businesses acquired, is
amortized on a straight-line basis over periods not exceeding 40 years.
Accumulated amortization of goodwill at 1999, 1998 and 1997 was $7,900,
$6,900 and $5,300, respectively. Goodwill and other intangible amortization
expense was $2,300, $3,500 and $5,400 in 1999, 1998 and 1997, respectively.

     The Company periodically reviews the specific carrying amounts of
goodwill and has determined that no impairments have occurred. Such reviews
are based on various analyses including profitability projections and
management's judgment of the related business' ability to achieve sufficient
profitability.

     Other assets include deposits and cash values of life insurance on the
lives of officers and key employees.

6. Capitalization

     The authorized capital stock of the Company is 100,000,000 shares of
Class A common stock and 10,000,000 shares of Class B common stock. Class A
shares have no voting rights and are not convertible. Class B shares have
voting rights and are convertible into Class A shares on a share-for-share
basis at any time. Both classes of stock have identical rights in the event
of liquidation.

     During December 1999, the Company repurchased 22,500 shares of its Class
A common stock. The total value of the Class A shares repurchased was $551.
On September 29, 1998 and November 24, 1998, the Company repurchased
1,500,000 and 1,000,000 shares of its Class A common stock, respectively, in
negotiated transactions from the William R. Kelly Trust. The total value of
the Class A shares repurchased was $75,886. In addition, the Company
repurchased 1,937 Class B shares at a total cost of $63.

7. Earnings Per Share

     The reconciliations of earnings per share computations for the fiscal
years 1999, 1998 and 1997 were as follows:



                                                1999       1998      1997
                                                ----       ----      ----

Net earnings                                   $85,110   $84,715   $80,780
                                               =======   =======   =======
Determination of shares (thousands):
     Weighted average common
       shares outstanding                       35,854    37,745    38,099

Effect of dilutive securities:
     Stock options                                  41        90        61
     Restricted and performance
       awards and other                            135       110        31
                                               -------   -------   -------
Weighted average common shares
     outstanding - assuming dilution            36,030    37,945    38,191
                                               =======   =======   =======

Earnings per share - basic                     $  2.37   $  2.24   $  2.12
Earnings per share - assuming dilution         $  2.36   $  2.23   $  2.12



                                     20

                  NOTES TO FINANCIAL STATEMENTS (continued)
                    Kelly Services, Inc. and Subsidiaries
          (In thousands of dollars except share and per share items)

     Stock options to purchase 1,162,000, 458,000 and 423,000 shares of
common stock at a weighted average price per share of $24.98, $35.17 and
$31.02 were outstanding during 1999, 1998 and 1997, respectively, but were
not included in the computation of diluted earnings per share. The options'
exercise price was greater than the average market price of the common shares
and was anti-dilutive.

8. Short-term Borrowings

     Short-term borrowings of $47,210, $47,629 and $54,958 were outstanding
at year-ends 1999, 1998 and 1997, respectively. Weighted average interest
rates were 4.6%, 5.3% and 7.8% at year-ends 1999, 1998 and 1997,
respectively. Interest expense and payments related to the short-term
borrowings for 1999, 1998 and 1997 were as follows:

                           1999       1998       1997
                           ----       ----       ----
Interest expense          $2,513     $3,207     $3,174
Interest payments          2,567      3,956      2,174


     During the fourth quarter of 1998 the Company entered into a committed
$100 million, five-year multi-currency revolving credit facility to be used
to fund working capital, acquisitions, and for general corporate purposes.
The interest rate applicable to borrowings under the line of credit is 20
basis points over LIBOR and may include additional costs if the funds are
drawn from certain countries. All of the borrowings are foreign currency
denominated and support the Company's international working capital position.
The carrying amounts of the Company's borrowings under the lines of credit
described above approximate their fair value.

9. Retirement Benefits

     The Company provides a qualified defined contribution plan covering
substantially all full-time employees, except officers and certain other
management employees. Upon approval by the Board of Directors, a contribution
based on eligible wages is funded annually. The plan offers a savings feature
with Company matching contributions. Assets of this plan are held by an
independent trustee for the sole benefit of participating employees.

     A nonqualified benefit plan is provided for officers and certain other
management employees. Upon approval by the Board of Directors, a contribution
based on eligible wages is set aside annually. This plan also includes
provisions for salary deferrals and Company matching contributions.

     Amounts provided for retirement benefits totaled $7,600 in 1999, $7,000
in 1998 and $6,300 in 1997.

10. Income Taxes

     Pretax income for the years 1999, 1998 and 1997 was taxed under the
following jurisdictions:


                      1999        1998        1997
                      ----        ----        ----
Domestic            $134,572    $134,731    $129,533
Foreign                9,138       8,884       7,447
                    --------    --------    --------
Total               $143,710    $143,615    $136,980
                    ========    ========    ========



                                     21

                  NOTES TO FINANCIAL STATEMENTS (continued)
                    Kelly Services, Inc. and Subsidiaries
          (In thousands of dollars except share and per share items)

     The provision for income taxes was as follows:

                               1999          1998         1997
                               ----          ----         ----
Current tax expense:
  U.S. federal               $ 42,898     $ 47,599     $ 52,517
  U.S. state and local         11,500       12,000       10,715
  Foreign                       6,880        5,802        4,405
                             --------     --------     --------
  Total current                61,278       65,401       67,637
Total deferred                 (2,678)      (6,501)     (11,437)
                             --------     --------     --------
Total provision              $ 58,600     $ 58,900     $ 56,200
                             ========     ========     ========



     Deferred tax assets (liabilities) are comprised of the following:

                                           1999          1998         1997
                                           ----          ----         ----
Depreciation and amoritization           $ (6,420)    $ (5,307)    $ (5,604)
Employee compensation and benefit plans    23,276       22,845       19,143
Workers' compensation                      22,352       22,428       19,811
Loss carryforwards                          4,793        3,453        2,946
Other, net                                  9,949        7,987        8,322
Valuation allowance                        (3,118)      (3,063)      (2,663)
                                         --------     --------     --------
Total deferred tax assets                  50,832       48,343       41,955
Total deferred tax liabilities             (1,044)      (1,279)      (1,363)
                                         --------     --------     --------
Total                                    $ 49,788     $ 47,064     $ 40,592
                                         ========     ========     ========



     The differences between income taxes for financial reporting purposes
and the U.S. statutory rate are as follows:

                                              1999     1998    1997
                                              ----     ----    ----
Income tax based on statutory rate            35.0%    35.0%   35.0%
State income taxes, net of federal benefit     5.2      5.4     5.1
Other, net                                     0.6      0.6     0.9
                                              ----     ----    ----
Total                                         40.8%    41.0%   41.0%
                                              ====     ====    ====

     The Company has loss carryforwards at January 2, 2000, totaling $4,793
which expire as follows:


     Year                 Amount
     ----                 ------
     2000                 $    8
     2001                    423
     2002                    196
     2003-2009             1,082
     No expiration         3,084
                          ------
     Total                $4,793
                          ======



                                     22

                  NOTES TO FINANCIAL STATEMENTS (continued)
                    Kelly Services, Inc. and Subsidiaries
          (In thousands of dollars except share and per share items)

     A valuation allowance of $3,118 has been recorded against the loss
carryforwards. The valuation allowance is provided on the tax benefits unless
it is considered more likely than not that the benefit will be realized.

     Provision has not been made for U.S. or additional foreign income taxes
on an estimated $15,700 of undistributed earnings of foreign subsidiaries
which are permanently reinvested. If such earnings were to be remitted,
management believes that U.S. foreign tax credits would largely eliminate any
such U.S. and foreign income taxes.

     The Company paid income taxes of $53,400 in 1999, $65,700 in 1998 and
$64,300 in 1997.

11.  Performance Incentive Plan

     Under the 1992 Performance Incentive Plan as amended and restated in
1996 (the "Plan"), the Company may grant stock options (both incentive and
nonqualified), Stock Appreciation Rights (SARs), restricted awards and
performance awards to key employees utilizing the Company's Class A stock.
Stock options may not be granted at prices less than the fair market value on
the date of grant, nor for a term to exceed 10 years. The Plan provides that
the maximum number of shares available for grants is 7-1/2 percent of the
outstanding Class A stock, adjusted for Plan activity over the preceding five
years. Shares available for future grants at the end of 1999, 1998 and 1997
were 946,000, 1,213,000 and 1,149,000, respectively.

     The Company applies Accounting Principles Board Opinion 25 and related
Interpretations in accounting for the Plan. Accordingly, no compensation cost
has been recognized for incentive and nonqualified stock options. If
compensation cost had been determined based on the fair value at the grant
dates for awards under the Plan consistent with the method of Statement of
Financial Accounting Standards 123, Accounting for Stock-Based Compensation,
the Company's net income would have been reduced by $1,487, $1,135 and $809
for 1999, 1998 and 1997, respectively; basic earnings per share would have
been reduced by $.04 in 1999, $.03 in 1998 and $.02 in 1997; and diluted
earnings per share would have been reduced by $.04 in 1999 and $.03 in 1998
and 1997.

     Since stock options generally become exercisable over several years and
additional grants are likely to be made in future years, the pro forma
amounts for compensation cost may not be indicative of the effects on net
income and earnings per share for future years.

     The fair value of each option included in the following tables is
estimated on the date of grant using the Black-Scholes option-pricing model
with the following weighted average assumptions used for grants in 1999, 1998
and 1997, respectively: dividend yield of 4.0 percent in 1999 and 3.0 percent
in 1998 and 1997, expected volatility of 30, 31 and 30 percent, risk-free
interest rates of 5.7, 5.3 and 5.9 percent and expected lives of six years in
1999 and 1998, and seven years in 1997.



                                     23


                  NOTES TO FINANCIAL STATEMENTS (continued)
                    Kelly Services, Inc. and Subsidiaries
          (In thousands of dollars except share and per share items)

     A summary of the status of stock option grants under the Plan as of
January 2, 2000, January 3, 1999 and December 28, 1997, and changes during
the years ended on those dates, is presented as follows:

                                                  Weighted Avg.
1999:                                  Options   Exercise Price
                                      ---------   -------------
Outstanding at beginning of year      1,330,000      $30.78
Granted                                 592,000       25.05
Exercised                               (32,000)      26.80
Cancelled                              (298,000)      30.54
                                      ---------
Outstanding at end of year            1,592,000      $28.77
                                      =========

Options exercisable at year end         552,000      $29.08
Weighted average fair value of
  options granted during the year        $ 6.30

1998:
Outstanding at beginning of year      1,160,000      $28.68
Granted                                 448,000       35.16
Exercised                              (104,000)      28.15
Cancelled                              (174,000)      29.67
                                      ---------
Outstanding at end of year            1,330,000      $30.78
                                      =========

Options exercisable at year end         404,000      $28.07
Weighted average fair value of
  options granted during the year        $10.06

1997:
Outstanding at beginning of year      1,022,000      $28.69
Granted                                 434,000       28.50
Exercised                               (90,000)      27.76
Cancelled                              (206,000)      28.72
                                      ---------
Outstanding at end of year            1,160,000      $28.68
                                      =========

Options exercisable at year end         280,000      $27.70
Weighted average fair value of
  options granted during the year        $ 8.69



                                     24

                  NOTES TO FINANCIAL STATEMENTS (continued)
                    Kelly Services, Inc. and Subsidiaries
          (In thousands of dollars except share and per share items)

     The following table summarizes information about options outstanding at
January 2, 2000:

                        Options Outstanding             Options Exercisable
                -----------------------------------   ----------------------
                              Weighted     Weighted                 Weighted
  Range of        Number       Average      Average     Number       Average
  Exercise     Outstanding    Remaining    Exercise   Exercisable   Exercise
   Prices      as of 1/2/00  Life (Years)   Price     as of 1/2/00    Price
- ------------   ------------  -----------   --------   ------------  --------

$24.00-24.50      448,000        9.15       $24.50       2,000       $24.50
$24.51-28.00      285,000        6.08        26.52     223,000        26.44
$28.01-29.00      264,000        7.44        28.23      93,000        28.19
$29.01-33.00      255,000        6.03        30.60     160,000        30.51
$33.01-38.50      340,000        8.10        35.32      74,000        35.27
                ---------        ----       ------     -------       ------
$24.00-38.50    1,592,000        7.59       $28.77     552,000       $29.08
                =========        ====       ======     =======       ======

     As of January 2, 2000, no SARs have been granted under the Plan.
Restricted awards are issued to certain key employees and are subject to
forfeiture until the end of an established restriction period. Restricted
awards totaling 87,000, 14,500 and 38,900 shares were granted under the Plan
during 1999, 1998 and 1997, respectively. The weighted average grant date
price of such awards was $26.55, $35.64 and $29.58 for 1999, 1998 and 1997,
respectively. Restricted awards outstanding totaled 104,000, 36,200 and
52,800 shares at year-ends 1999, 1998 and 1997, respectively, and have a
weighted average remaining life of 2.2 years at January 2, 2000.

     Under the Plan, performance awards may be granted to senior executive
officers, the payout of which is determined by the degree of attainment of
objectively determinable performance goals over the established relevant
performance period. No performance awards were granted during 1999.
Performance awards totaling 51,500 and 44,500 shares were granted under the
Plan during 1998 and 1997, respectively. The weighted average grant date
prices of such awards were $34.94 and $28.06 for 1998 and 1997, respectively.
Unearned performance awards outstanding at year-ends 1999, 1998 and 1997 were
70,000, 115,200 and 76,300, respectively, and have a weighted average
remaining life of six months at January 2, 2000. Total compensation cost
recognized for restricted and performance awards was $1,000, $2,000 and
$1,400 for 1999, 1998 and 1997, respectively.

12. Contingencies

     The Company is subject to various legal proceedings, claims and
liabilities which arise in the ordinary course of its business. Litigation is
subject to many uncertainties, the outcome of individual litigated matters is
not predictable with assurance and it is reasonably possible that some of the
foregoing matters could be decided unfavorably to the Company. Although the
amount of the liability at January 2, 2000, with respect to these matters
cannot be ascertained, the Company believes that any resulting liability will
not be material to the financial statements of the Company at January 2,
2000.



                                     25

                  NOTES TO FINANCIAL STATEMENTS (continued)
                    Kelly Services, Inc. and Subsidiaries
          (In thousands of dollars except share and per share items)

13.  Segment Disclosures

     In 1998, the Company adopted Statement of Financial Accounting Standards
(SFAS) 131, Disclosures About Segments of an Enterprise and Related
Information, which revises reporting and disclosure requirements for
operating segments.

     The Company has determined that its reportable segments are those that
are based on the Company's method of internal reporting, which disaggregates
its business by segment. The Company's reportable segments are: (1) U.S.
Commercial Staffing, (2) Professional, Technical and Staffing Alternatives
(PTSA) and (3) International. The accounting policies of the segments are the
same as those described in the "Summary of Significant Accounting Policies."

     The following table presents information about the reported operating
income of the Company for the fiscal years 1999, 1998 and 1997. Segment data
presented is net of intersegment revenues. Asset information by reportable
segment is not reported, since the Company does not produce such information
internally.


                                1999             1998            1997
                              52 weeks         53 weeks        52 weeks
                              --------         --------        --------
Sales:
U.S. Commercial Staffing     $ 2,247,700     $ 2,263,500     $ 2,201,000
PTSA                             937,100         864,000         797,400
International                  1,084,300         964,800         854,500
                             -----------     -----------     -----------

   Consolidated Total        $ 4,269,100     $ 4,092,300     $ 3,852,900
                             ===========     ===========     ===========

Earnings from Operations:
U.S. Commercial Staffing     $   198,600     $   200,500     $   194,800
PTSA                              55,000          44,100          37,400
International                     33,600          29,600          20,500
Corporate                       (143,200)       (133,600)       (116,900)
                             -----------     -----------     -----------

   Consolidated Total        $   144,000     $   140,600     $   135,800
                             ===========     ===========     ===========



                                     26


                  NOTES TO FINANCIAL STATEMENTS (continued)
                    Kelly Services, Inc. and Subsidiaries
          (In thousands of dollars except share and per share items)

     Specified items included in segment earnings from operations for the
fiscal years 1999, 1998 and 1997 were as follows:


                                   1999        1998       1997
                                 52 weeks    53 weeks   52 weeks
                                 --------    --------   --------
Depreciation and Amortization:
U.S. Commercial Staffing          $ 5,911    $ 6,237    $ 7,531
PTSA                                2,395      1,977      1,972
International                      11,228     10,262      9,213
Corporate                          16,704     10,389      9,625
                                  -------    -------    -------
   Consolidated Total             $36,238    $28,865    $28,341
                                  =======    =======    =======
Interest Income:
U.S. Commercial Staffing          $  --      $  --      $  --
PTSA                                   23        141         57
International                         615        783        492
Corporate                           1,634      5,282      3,841
                                  -------    -------    -------
   Consolidated Total             $ 2,272    $ 6,206    $ 4,390
                                  =======    =======    =======
Interest Expense:
U.S. Commercial Staffing          $  --      $  --      $  --
PTSA                                 --         --         --
International                       2,389      3,207      2,774
Corporate                             124       --          400
                                  -------    -------    -------
   Consolidated Total             $ 2,513    $ 3,207    $ 3,174
                                  =======    =======    =======

     The following is long-lived assets information by geographic area as of
the years ended 1999, 1998 and 1997:

                              1999        1998        1997
                              ----        ----        ----
Long-Lived Assets:
Domestic                    $223,000    $170,500    $130,000
International                 74,500      73,900      66,300
                            --------    --------    --------

   Total                    $297,500    $244,400    $196,300
                            ========    ========    ========


     Long-lived assets include Property and Equipment and Intangibles and
Other Assets. No single foreign country's long-lived assets were material to
the consolidated long-lived assets of the Company.

     Foreign revenue is based on the country in which the legal subsidiary is
domiciled. No single foreign country's revenue was material to the
consolidated revenues of the Company.



                                     27



                  NOTES TO FINANCIAL STATEMENTS (continued)
                    Kelly Services, Inc. and Subsidiaries


SELECTED QUARTERLY FINANCIAL DATA (unaudited)

                       First      Second       Third      Fourth
                      Quarter     Quarter     Quarter     Quarter      Year
                      -------     -------     -------     -------      ----
                          (In thousands of dollars except per share items)
                                                     
Sales of services
1999..............  $1,025,959  $1,066,783  $1,092,002  $1,084,369  $4,269,113
1998 (53 weeks)...     959,382   1,001,286   1,032,875   1,098,708   4,092,251
1997..............     880,846     959,726   1,001,209   1,011,154   3,852,935

Cost of services
1999..............     846,828     876,809     893,900     885,515   3,503,052
1998 (53 weeks)...     791,472     823,542     846,094     899,868   3,360,976
1997..............     724,508     789,618     824,820     832,643   3,171,589

Selling, general
and administrative
1999..............     153,539     154,841     155,390     158,340     622,110
1998 (53 weeks)...     143,069     143,584     145,404     158,602     590,659
1997..............     132,219     137,636     136,464     139,263     545,582

Net earnings
1999..............      15,188      20,734      25,018      24,170      85,110
1998 (53 weeks)...      15,064      20,623      24,903      24,125      84,715
1997..............      14,228      19,443      23,587      23,522      80,780

Basic earnings
  per share (1)
1999..............         .42         .58         .70         .67        2.37
1998 (53 weeks)...         .39         .54         .65         .66        2.24
1997..............         .37         .51         .62         .62        2.12

Diluted earnings
  per share (1)
1999..............         .42         .58         .69         .67        2.36
1998 (53 weeks)...         .39         .54         .65         .66        2.23
1997..............         .37         .51         .62         .61        2.12

Dividends per
  share
1999..............         .23         .24         .24         .24         .95
1998..............         .22         .23         .23         .23         .91
1997..............         .21         .22         .22         .22         .87


(1) Earnings per share amounts for each quarter are required to be computed
independently and may not equal the amounts computed for the total year.




                                     28



                       SCHEDULE II - VALUATION RESERVES
                    Kelly Services, Inc. and Subsidiaries
                               JANUARY 2, 2000
                          (In thousands of dollars)

                                                                Additions
                                                          -------------------------
                                              Balance at  Charged to   Deductions-     Balance
                                              beginning   costs and   uncollectible    at end
Description                                    of year     expenses     accounts       of year
- -----------                                   ---------   ----------  -------------    -------
                                                                           
Fifty-two weeks ended January 2, 2000:

  Reserve deducted in the balance
    sheet from the assets to which it
    applies -

      Allowance for doubtful accounts           $13,035    $ 5,125       $4,585        $13,575
                                                =======    =======       ======        =======
Fifty-three weeks ended January 3, 1999:

  Reserve deducted in the balance
    sheet from the assets to which it
    applies -

      Allowance for doubtful accounts           $12,375    $ 7,355       $6,695        $13,035
                                                =======    =======       ======        =======
Fifty-two weeks ended December 28, 1997:

  Reserve deducted in the balance
    sheet from the assets to which it
    applies -

      Allowance for doubtful accounts           $ 8,320    $12,250       $8,195        $12,375
                                                =======    =======       ======        =======





                                      29


                              INDEX TO EXHIBITS
                            REQUIRED BY ITEM 601,
                                REGULATION S-K

Exhibit No                 Description                               Page
- ----------                 -----------                               ----

  3.1         Certificate of Incorporation. (Reference is
              made to Exhibit 3.2 to the Form 10-Q for the
              quarterly period ended June 30, 1996, filed
              with the Commission in August, 1996, which is
              incorporated herein by reference).

  3.2         By-laws. (Reference is made to Exhibit 3 to
              the Form 10-Q for the quarterly period ended
              September 29, 1996, filed with the Commission
              in November, 1996, which is incorporated
              herein by reference).

  4           Rights of security holders are defined in
              Articles Fourth, Fifth, Seventh, Eighth,
              Ninth, Tenth, Eleventh, Twelfth, Thirteenth,
              Fourteenth and Fifteenth of the Certificate of
              Incorporation. (Reference is made to Exhibit
              3.2 to the Form 10-Q for the quarterly period
              ended June 30, 1996, filed with the Commission
              in August, 1996, which is incorporated herein
              by reference).

  10.1        Short-Term Incentive Plan, as amended and
              restated on March 23, 1998. (Reference is made
              to Exhibit 10 to the Form 10-Q for the
              quarterly period ended June 28, 1998, filed
              with the Commission in August, 1998, which is
              incorporated herein by reference).

  10.2        Kelly Services, Inc. Amended and Restated
              Performance Incentive Plan. (Reference is made
              to Exhibit B to the Definitive Proxy for the
              fiscal year ended December 31, 1995, filed
              with the Commission in April, 1996, which is
              incorporated herein by reference).

  10.3        Kelly Services, Inc. 1999 Non-Employee
              Directors Stock Option Plan. (Reference is
              made to Exhibit A to the Definitive Proxy for
              the fiscal year ended January 3, 1999, filed
              with the Commission in April, 1999, which is
              incorporated herein by reference).

  21          Subsidiaries of Registrant.                             1
                                                                (Document 2)

  23          Consent of Independent Accountants.                     1
                                                                (Document 3)

  24          Power of Attorney.                                      1
                                                                (Document 4)

  27          1999 Financial Data Schedule.                           1
                                                                (Document 5)





                                      1


                          SUBSIDIARIES OF REGISTRANT

                             Kelly Services, Inc.




                                                 State/Jurisdiction
       Subsidiary                                 of Incorporation              Business Name
       ----------                                 -----------------             -------------
                                                                      
Kelly Services (Canada), Ltd.                          Canada               Kelly Temporary Services

Kelly Properties, Inc.                                 Michigan             Kelly Properties

Kelly Services (Ireland), Ltd.                         Delaware             Kelly Services
     (a subsidiary of Kelly Properties, Inc.)

Kelly Services (UK), Ltd.                              United Kingdom       Kelly Temporary Services
     (a subsidiary of Kelly Properties, Inc.)

Kelly Assisted Living Services, Inc.                   Delaware             Kelly Assisted Living Services

Kelly Services (Australia), Ltd.                       Delaware             Kelly Temporary Services

Kelly Services (New Zealand), Ltd.                     Delaware             Kelly Temporary Services

Kelly Professional Services (France), Inc.             Delaware             Kelly Professional Services

Kelly Services of Denmark, Inc.                        Delaware             Kelly Services (Danmark)

Kelly Services (Nederland), B.V.                       The Netherlands      Kelly Uitzendburo

Kelly Services Norge A.S.                              Norway               Kelly Bemmanings/oslinger
     (a subsidiary of Kelly Services
     (Nederland), B.V.)

Kelly de Mexico, S.A. de C.V.                          Mexico               Kelly Temporary Services

KSI Acquisition Corporation                            California           Kelly Staff Leasing

Kelly Services (Suisse) Holding S.A.                   Switzerland          Kelly Services Suisse

Kelly Services France S.A.                             France               Kelly Services France

Kelly Services Interim, S.A.                           France               Kelly Services Interim
     (a subsidiary of Kelly Services
     France S.A.)

Competences RH SARL                                    France               Kelly Formation
     (a subsidiary of Kelly Services
     France S.A.)

Kelly Services Luxembourg S.A.R.L.                     Luxembourg           Kelly Services

Kelly Services Italia Srl                              Italy                Kelly Services
     (a subsidiary of Kelly Services, Inc. and
      Kelly Properties, Inc.)

Kelly Services (Societa di fornitura di lavaro         Italy                Kelly Services Italia SpA
      temporaneo) SpA
     (a subsidiary of Kelly Services, Inc. and
      Kelly Properties, Inc.)



                                      2

                    SUBSIDIARIES OF REGISTRANT (continued)

                             Kelly Services, Inc.



                                                 State/Jurisdiction
       Subsidiary                                 of Incorporation              Business Name
       ----------                                 -----------------             -------------
                                                                      

Kelly Services Iberia Holding Company, S.L.            Spain                Kelly Services E.T.T.

Kelly Services Empleo Empresa de Trabajo               Spain                Kelly Services E.T.T.
      Temporal, S.L.
     (a subsidiary of Kelly Services Iberia
      Holding Company, S.L.)

Kelly Services Seleccion y Formacion, S.L.             Spain                Kelly Services E.T.T.
     (a subsidiary of Kelly Services Iberia
      Holding Company, S.L.)

Kelly Services CIS, Inc.                               Delaware             Kelly Services

ooo Kelly Services                                     Russia               Kelly Services
     (a subsidiary of Daylesford Investments
      Limited, a Cyprus Holding Company)

Kelly Services Deutschland GmbH                        Germany              Kelly Services

Kelly Services Consulting GmbH                         Germany              Kelly Services
     (a subsidiary of Kelly Services
      Deutschland GmbH)

Kelly Services Interim (Belgium) S.A., N.V.            Belgium              Kelly Services Interim
     (a subsidiary of Kelly Services, Inc. and
      Kelly Properties, Inc.)

Kelly Services Select (Belgium) S.A., N.V.             Belgium              Kelly Services Select
     (a subsidiary of Kelly Services, Inc. and
      Kelly Properties, Inc.)

Kelly Services Sverige A.B.                            Sweden               Help Personal A.B.

LabStaff Holdings, Pty. Ltd.                           Australia            LabStaff
     (a subsidiary of Kelly Services (Australia),
     Ltd.)

HTM Group                                              Mexico               Kelly Services
     (a subsidiary of Kelly de Mexico S.A.
     de CV and Kelly Properties, Inc.)

Interim Job S.A.R.L.                                   Luxembourg           Interim Job
     (a subsidiary of Kelly Services
      Luxembourg S.A.R.L.)

Expertos en Trabajo E.T.T., S.L.                       Spain                Extra
     (a subsidiary of Kelly Services Empleo
     Empresa de Trabajo Temporal, S.L.)




                                      1

                      CONSENT OF INDEPENDENT ACCOUNTANTS




We hereby consent to the incorporation by reference in the Registration
Statements on Forms S-8 (Nos. 2-85867, 33-48782 and 33-51239) and on Form S-3
(No. 333-79329) of Kelly Services, Inc. of our report dated January 27, 2000,
relating to the financial statements and financial statement schedule, which
appears in this Form 10-K.




/s/ PricewaterhouseCoopers LLP
- --------------------------------------------
Pricewaterhouse Coopers LLP
Detroit, Michigan
March 28, 2000



                                      1


                              POWER OF ATTORNEY


           Each of the undersigned directors of Kelly Services, Inc. does
hereby appoint each of George M. Reardon and William K. Gerber, signing
singly, his true and lawful attorneys, to execute for and on behalf of the
undersigned the Form 10-K Annual Report pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934 for the fiscal year ended January 2,
2000, to be filed with the Securities and Exchange Commission in Washington,
D.C. under the provisions of the Securities Exchange Act of 1934, as amended,
and any and all amendments to said Form 10-K whether said amendments add to,
delete from or otherwise alter the Form 10-K, or add to or withdraw any
exhibit or exhibits, schedule or schedules to be filed therewith, and any and
all instruments necessary or incidental in connection therewith, hereby
granting unto said attorneys and each of them full power and authority to do
and perform in the name and on behalf of each of the undersigned, and in any
and all capacities, every act and thing whatsoever required or necessary to
be done in the exercise of any of the rights and powers herein granted, as
fully and to all intents and purposes as each of the undersigned might or
could do in person, hereby ratifying and approving the acts of said attorneys
and each of them.

           IN WITNESS WHEREOF the undersigned have caused this Power of
Attorney to be executed as of this 9th day of February, 2000.




                                                    /s/ Terence E. Adderley
                                                    -------------------------
                                                    Terence E. Adderley


                                                    /s/ Maureen A. Fay, O.P.
                                                    -------------------------
                                                    Maureen A. Fay, O.P.



                                                    /s/ Cedric V. Fricke
                                                    -------------------------
                                                    Cedric V. Fricke



                                                    /s/ Verne G. Istock
                                                    -------- ----------------
                                                    Verne G. Istock



                                                    /s/ B. Joseph White
                                                    -------------------------
                                                    B. Joseph White



  


                     5

THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
BALANCE SHEET AND STATEMENT OF EARNINGS AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.

                            1,000
                           YEAR
                       JAN-02-2000
                            JAN-02-2000
                                           54,032
                                      6,018
                                   616,060
                                     13,575
                                           0
                                736,168
                                          281,112
                                   94,112
                                1,033,691
                           451,318
                                               0
                                 0
                                           0
                                         40,116
                                      542,257
                  1,033,691
                                               0
                              4,269,113
                                                 0
                                 3,503,052
                                      0
                                      0
                                    0
                                 143,710
                                     58,600
                              85,110
                                        0
                                       0
                                             0
                                     85,110
                                        2.37
                                      2.36