The world’s happiest people are still in Finland, the Nordic country that has ranked first in happiness for 9 consecutive years, according to the World Happiness Report, released on Thursday, March 19. The United States inched up to 23rd place this year from 24th in 2025.
Iceland and Denmark followed in second and third place, respectively, trading places from last year’s ranking. Costa Rica ranked fourth, marking the first Latin American country to break into the top five in the report, published by the Wellbeing Research Centre at the University of Oxford since 2012, in partnership with Gallup and the UN Sustainable Development Solutions Network.
😁Finland ranked #1 for the 9th straight year
😁U.S. ranked #23 in 2026
😁2 Latin American countries in Top 10
😁Based on global life satisfaction data
Countries are ranked for happiness based on self-reported life satisfaction data (Cantril ladder question) from the Gallup World Poll.
Rankings use six key factors:
✓GDP per capita
✓Social support
✓Healthy life expectancy
✓Freedom to make life choices
✓Generosity
✓Freedom from corruption
Happiness Trends
For the second year in a row, no major English-speaking countries made the top 10. Australia came in at 15th, the United States at 23rd, Canada at 25th, and the UK at 29th. In the United States, Canada, Australia, and New Zealand, collectively known as the NANZ countries, the happiness of people under 25 has fallen by an average of 0.86 points on a 0 to 10 scale over the past 20 years.
The freedom to make life choices is a key metric that ranks high among the top five happiest countries. Finland, Iceland, Denmark, and Sweden dominated the list once again, with strong personal, social, and economic freedom cited. The freedom to make life choices goes beyond financial prosperity, with happiness levels attributed to the ability to control one’s own path, according to the report.
The U.S. has declined in happiness levels since the report’s inception, dropping from 11th in 2011 to 24th in 2025, one of the steepest declines among wealthy democracies. Some of the reasons fueling unhappiness? Polarization, loneliness, and social media.
Loneliness has reached epidemic levels, with the U.S. among the top five loneliest countries. The report also found that young people worldwide were increasingly lonely, with 19% reporting in 2023 having no one to count on for social support.
Happiness, American Style
Aside from differences resulting from the generational divide and excessive social media use, the decline in Americans’ happiness is also due to a lack of social capital and social support, per the report. Many people don’t have close, trusted friendships, and there is a general distrust of institutions across populations for various reasons.
- Peak US Happiness: #11 in 2012 (highest ever)
- Recent low: #24 in 2025 (lowest ever)
- Rebound: #23 in 2026 (slightly up)
- Trend: Long-term decline (greater drops post-2016)
Young People in 2026: Happy, Not Happy
The data finds Gen Z (1997-2012) is now the unhappiest generation in the U.S., Canada, Australia, and New Zealand, collectively known as the NANZ countries. The demographic of under-30 digital natives has been slipping in these countries over the past decade, with social media use seemingly behind some or most of the drop in happiness.
“We should look as much as possible to put the ‘social’ back into social media,” said Jan-Emmanuel De Neve, an Oxford economics professor who directs the Wellbeing Research Centre and co-edits the World Happiness Report.
Adolescents in 43 countries with high rates of “problematic” social media use — over five hours daily —reported significantly lower well-being. Passive use (scrolling) and influencer-driven content were found to be the most detrimental to happiness.
But it’s only in the NANZ countries and in Western Europe that youth wellbeing has declined. Outside of the NANZ countries, the trend is largely positive among the younger generation, according to Gallup. In 85 of 136 countries, people under 25 years of age are happier now (2023-2025) than they were about 20 years ago (2006-2010).
Newly Happy: Costa Rica Brings Latin America into Top 5
Costa Rica climbed to number four this year, a new addition to the top five and the first time a Latin American country reached the top ranks, after rising from 23rd place in 2023. Family bonds and other social connections are credited with the boost.
“We think it’s because of the quality of their social lives and the stability that they currently enjoy,” De Neve said. “Latin America more generally has strong family ties, strong social ties, a great level of social capital, as a sociologist would call it, more so than in other places.”
Mexico, Kosovo, and the UAE ranked higher than many richer economies.
What’s Special About Finland, Iceland, and Denmark?
Pick a major happiness survey, and Finland will be among the countries at the top of the list. Finns were even happier during the peak COVID years. Finland has fostered an “infrastructure of happiness,” its website explains. The Finnish word for happiness, “onni,” is the first name of more than 10,000 people in the country of 5.6 million.
The infrastructure of trust includes residents’ high trust in government, police, and fellow citizens, resulting in low crime, minimal corruption, and a strong sense of security. Social services and proximity to nature are also cited, with the country being more than 70% forested. Communal and personal saunas are part of everyday life, meals are tied to local agriculture, and there is a sense of environmental stewardship.
Icelanders live by the country’s motto of “Þetta reddast” — roughly translated as “no matter what, everything works out.” The island nation of just 400,000 people ranks first for social support, a common factor for happiness. The country is also in the top 10 for GDP per capita, has a healthy life expectancy, and is known for being helpful to one another.
Denmark ranks third globally for social support and low corruption, and seventh for GDP per capita. Known for working together for the common good, Danes have a strong sense of trust in one another and in government. The Danish cultural concept of “hygge” — cozy intimacy — and modest expectations — make for contentment and simple moments.
How the World Defines Happiness
About the World Happiness Report
Since the World Happiness Report debuted in 2012, the Gallup World Poll has provided the data behind the annual happiness rankings featured in the report and insights into global well-being and happiness.
The report ranks global happiness based on a three-year average of Gallup World Poll data, which surveys people in more than 140 countries about life satisfaction, usually conducted with at least 1,000 people per country.
