The Philippine government has supported efforts to sustain poverty reduction in recent years. Many Filipinos have improved their economic circumstances, yet they remain at risk of falling below the poverty threshold. This Policy Note focuses on the vulnerability of emerging middle-class households to temporary shocks such as health emergencies, job losses, price hikes, and natural disasters. Despite the growth of the middle-income class, some households are still susceptible to transient poverty, moving back and forth the poverty line. Addressing this vulnerability is crucial to preventing poverty reversals, particularly among transitioning households. The authors identify four key areas for action: social protection, social insurance coverage, stable livelihoods, and vulnerability monitoring. These strategies aim to reduce vulnerability and build a more resilient middle class.
