Canada has dropped to 18th place in the 2025 World Happiness Report, declining from 15th last year and marking a significant fall since its peak position of 5th in 2015. Released on March 20, the annual report coincided with the UN's International Day of Happiness and highlights global trends in subjective well-being. The report once again crowned Finland as the happiest country in the world for the eighth consecutive year.
This year's World Happiness Report reveals a concerning downward trend for Canada, ranking it among the so-called "largest losers" in happiness over the past two decades. The United States also saw a decline, landing at its lowest-ever ranking of 24th, down from 11th place in 2012.
According to the study, conducted by the Wellbeing Research Centre at the University of Oxford and the analytics firm Gallup, the rankings are based on individual life evaluations that incorporate six key variables: GDP per capita, healthy life expectancy, social support, freedom to make life choices, generosity, and perceptions of corruption.
Despite Canada ranking respectably at 15th for perceptions of corruption and 16th for GDP, it fell to 35th in social support and a dismal 68th for freedom to make choices. About 18 percent of Canadians expressed dissatisfaction with their freedom to choose their life paths, a statistic that underscores a growing sense of helplessness among a segment of the population.
Felix Cheung, a Canada Research Chair in population well-being and an assistant professor at the University of Toronto, emphasizes that an individual’s unhappiness might be attributed to personal circumstances. However, he highlights that declining national happiness is a structural issue, indicating that larger societal factors are at play. “When one person is unhappy, that’s an individual issue,” Cheung points out. “But when a country is unhappy, this is a structural issue, and a structural issue requires a structural problem.”
The 2024 Canadian Happiness Report provided additional insights, indicating a steady decline in Canadians' quality of life over the past decade, particularly among those under the age of 30. Disadvantaged groups, including members of the 2SLGBTQI+ community, individuals with low income, and First Nations, Métis, and Inuit peoples reported alarmingly lower life satisfaction. This indicates a troubling trend that Cheung believes can be partially addressed by prioritizing investments in youth mental health.
The falling ranking also raises questions about what contributes to happiness. In examining the various influences on happiness, the recent report suggests that elements beyond wealth—such as social connections—play a crucial role. Researchers point to the importance of sharing meals, stating that Canadians average only 8.4 communal meals a week and ranked a disappointing 53rd in meal-sharing globally. In contrast, U.S. trends indicate an alarming shift, with more people dining alone, as the number of individuals eating solitary meals has surged by 53% over the last two decades.
Jon Clifton, CEO of Gallup, articulates the essence of happiness as not solely resting on financial prosperity but deeply rooted in trust and community connections. “Happiness isn’t just about wealth or growth — it’s about trust, connection and knowing people have your back,” he asserts. This sentiment emphasizes the need for societal activities that reinforce communal bonds.
Further, the report indicates that a person’s perception of their community’s kindness shows a strong relationship with overall happiness. For instance, intentionally dropped wallets in Toronto were returned at a rate of over 80%, contrasting sharply with public perception, which estimated a return rate of just 23%. The findings suggest that our pessimistic views about others' goodwill may diminish collective well-being.
Besides Finland, Denmark, Iceland, and Sweden continue to occupy the top four spots in the happiness rankings. Other notable entries include Israel, which ranked 8th despite ongoing tensions, while Costa Rica and Mexico entered the top 10 for the first time, ranking 6th and 10th respectively. Conversely, Afghanistan once again holds the dubious title of the unhappiest country.
The World Happiness Report not only ranks happiness but also challenges governments to consider how a nation’s success is defined. As Cheung explains, “We believe that happiness should be part of that conversation.” His sentiment positions happiness as a vital metric for societal progress.
In summary, Canada's decline to 18th in the happiness rankings serves as a wake-up call, urging policymakers and communities alike to explore collective happiness strategies, particularly for marginalized groups and the youth population. Investing in social support systems, fostering trust, and creating environments conducive to personal freedom could foster a more satisfied citizenry.
