Were you aware that the population living below the poverty line in the Philippines has decreased substantially over the past two decades, both as a proportion and in total count? Additionally, the disparity between the wealthy and those less fortunate has diminished somewhat. Indeed, amid all the concerns about our nation’s political climate, social well-being (especially concerning areas like education, healthcare, and nourishment), and economic conditions, there is positive development. These improvements align with reports released by the Philippine Statistics Authority (PSA). Given my trust in their reliable team of experts who manage these statistics, I see little cause for skepticism regarding this information.
According to the Family Income and Expenditure Survey, in 2006, one out of every five Filipino households (21%) earned less than the poverty threshold. This figure decreased slightly to 18.9% by 2015, and then plummeted to just 10.9%—or roughly half the rate seen in 2006—in 2023. In terms of wealth distribution, the disparity between the wealthiest tenth and the least wealthy tenth of the populace stood at 19.4-to-1 in 2006. However, this discrepancy shrank considerably to 9.1-to-1 in 2015 and even narrower still to 6.2-to-1 as of 2023—an impressive shift across those 17 years. Additionally, when measuring economic inequality using the Gini coefficient—which ranges from zero for total equality to one for complete inequality—the value fell from 0.458 in 2006 to 0.444 in 2015 before improving substantially to 0.391 in 2023. Overall, these statistics indicate significant progress in reducing both poverty levels and income disparities within the country during the past twenty years.
The drawback of official poverty statistics lies in their focus solely on income poverty, despite our understanding that overall human wellbeing encompasses much more than just financial resources—it also includes aspects related to social conditions, environment, politics, culture, and spirituality. Therefore, an approach that evaluates multiple facets of poverty—such as deprivations in essential areas such as healthcare and nutrition, education, attire, housing, alongside factors like political participation, ecological safety, and spiritual contentment—is highly preferable. In alignment with this perspective, the independent research organization Social Weather Stations (SWS) monitors and periodically publishes information about poverty levels by gauging individuals’ self-assessment of their economic condition through direct questioning regarding whether they perceive themselves as impoverished ('mahirap'). This method operates under the premise that those experiencing these circumstances firsthand are best positioned to evaluate their quality of life or lack thereof, taking into account the broad spectrum of deprivations involved.
Unsurprisingly, the SWS’s measurement of self-reported poverty has persistently remained above the income-based PSA poverty rate, with no significant decline over the past twenty years. In 2006, self-perceived poverty stood at 54%, dropped to an all-time low of 44% in 2016, yet climbed back up to 50% this year. It had hovered near 48% recently before surging to 57% last year. Despite these fluctuations, according to Dr. Mahar Mangahas from SWS, the latest poll conducted in April shows that those reporting they weren’t impoverished reached their peak level since records began in the '80s, standing at 42%. Additionally, the proportion of people identifying as "barely coping" decreased significantly to just 8%—down from a peak of 39% in 2021—which suggests more individuals now feel secure beyond merely getting by, marking positive progress overall.
Behind the reduction in poverty, two primary factors come into play based on my observations. Initially, the local employment scenario saw significant enhancement during this period. In 2006, the unemployment rate stood at 8.1%, with underemployment reaching 21.3%. Fast forward to 2015, these figures had declined to 6.6% for unemployment and 17.5% for underemployment; by 2024, they decreased even further to 4.3% and 13.3% correspondingly. A decline in underemployment suggests an increase in job quality over time, which is corroborated by the rise in the percentage of wage and salaried employees—from about half (50.9%) in 2006 to nearly two-thirds (67.1%) in 2024. Conversely, the portion of individuals working independently—predominantly within the informal economy—dropped from around a third (32.7%) in 2006 to roughly a quarter (25.7%) in 2024, whereas the contribution of unpaid family laborers reduced from approximately 11.7% to only 4.9%. This data indicates that not only did we see growth in available positions but also improvements in their caliber, leading to favorable outcomes for households overall.
Secondly, the government's initiatives aimed at reducing poverty might be proving effective, particularly with our Conditional Cash Transfers (CCT), which fall under the Pantawid Pamilyang Pilipino Program or 4Ps. Numerous global studies focusing on CCTs have confirmed their effectiveness in enhancing impoverished households' ability to escape poverty by investing in their children's education and health. The Department of Social Welfare and Development has engaged an impartial evaluator for assessing the impact of these interventions, such as the 4Ps and several other social welfare measures, towards lifting people out of poverty. Once completed later this year, we should gain insights indicating whether significant investments made toward social assistance truly yield positive outcomes.
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