This Policy Note examines the challenges of establishing an effective system for developing middle-skilled workers in the Philippines. It highlights that the absence of a unified definition of middle skills among key agencies—such as the Philippine Statistics Authority, CHED, and TESDA—has led to significant misalignment in program design and evaluation. The Note also identifies a persistent mismatch between the skills taught in these programs and actual labor demands, resulting in graduates lacking the competencies required by industry and contributing to workforce underemployment. Despite these systemic issues, the Note affirms that middle-skill pathways are a viable alternative to four-year degrees, often leading to better employment outcomes and higher wages for graduates. This analysis underscores the critical need to align middle-skill programs and policies not only with the Philippine Development Plan (PDP) 2023–2028 but also with the evolving demands of the Fifth Industrial Revolution.