Assume a country has a total population of 58 million, of which 70 per cent are part of the working-age population. 16.5 million working-age people are not looking for a job, and 19.4 million are employed. What are the labour force participation rate (LFPR) and the unemployment rate (u)?

Sure, let's calculate the Labour Force Participation Rate (LFPR) and the Unemployment Rate (u) step by step.

1. First, we need to find out the total working-age population. As given, 70% of the total population (58 million) are of working age. So, the working-age population is 70/100 * 58 million = 40.6 million.

2. The labour force is the sum of employed and unemployed people. Unemployed people are those who are part of the working-age population, are not employed, but are actively looking for a job. In this case, we know that 16.5 million people are not looking for a job, so they are not part of the labour force. Therefore, the labour force is the total working-age population (40.6 million) minus the people not looking for a job (16.5 million), which equals 24.1 million.

3. The Labour Force Participation Rate (LFPR) is the ratio of the labour force to the working-age population, expressed as a percentage. So, LFPR = (Labour Force / Working-age population) * 100 = (24.1 million / 40.6 million) * 100 = 59.36%.

4. The number of unemployed people is the difference between the labour force and the number of employed people. So, the number of unemployed people = Labour force - Employed people = 24.1 million - 19.4 million = 4.7 million.

5. The Unemployment Rate (u) is the ratio of unemployed people to the labour force, expressed as a percentage. So, u = (Unemployed people / Labour force) * 100 = (4.7 million / 24.1 million) * 100 = 19.5%.

So, the Labour Force Participation Rate is 59.36% and the Unemployment Rate is 19.5%.