The happiness ratings were compiled by the Wellbeing Research Centre at the University of Oxford in collaboration with Gallup and the U.N. Sustainable Development Solutions Network and relied on people’s self-reported life satisfaction.
One such person is Aino Virolainen, a digital commerce director, who has lived abroad but always dreams of returning home to Finland one day.
“This is where I always want to come back to and where I want to, you know, grow my kids and grow old myself,” Virolainen said March 20.
“And I think it’s because, you know, the peace and the quietness and the trustworthiness. You know, how we speak directly. And nature, of course. It’s clean and the air is fresh and what’s there not to love?”
Importance of Family, Supportive Friends, and Societal Trust
Researchers say that beyond health and wealth, some factors that influence happiness can be simple: sharing meals with others, having somebody to count on for social support, and household size. In Mexico and Europe, for example, a household size of four to five people predicts the highest levels of happiness, according to the study.
“Happiness isn’t just about wealth or growth—it’s about trust, connection, and knowing people have your back,” said Jon Clifton, CEO of Gallup. “If we want stronger communities and economies, we must invest in what truly matters: each other.”
Belief in the kindness of others also emerged as a major happiness factor.
“People are much too pessimistic about the benevolence of others,” the researchers said.
“For example, when wallets were dropped in the street by researchers, the proportion of returned wallets was far higher than people expected.”
They said the amount of wallets returned was about twice as high as people expect globally.
Nordic countries rank among the highest for both the expectation and the reality of returned wallets.
Alexandra Peth, a managing director, said Finnish culture prioritizes trust and connection.
“People trust each other in Finland and I think on many levels in the society, we try to support each other,” Peth said. “So I think the system makes it kind of that you can trust it somehow.”
Given that people are globally too pessimistic about the kindness of their communities and how our perception affects our happiness, the researchers believe that our well-being can be improved by communicating information about the true level of benevolence in societies.
The study also showed that when society is more benevolent, the people who benefit most are those who are least happy, leading to a more equal distribution of happiness.
US and UK Hit Record Lows
While the top 20 list was dominated by European countries, the ratings revealed some surprising results. Israel ranked eighth despite the ongoing war with Hamas, while Costa Rica and Mexico broke into the top 10 for the first time.When it comes to decreasing happiness, the United States dropped to its lowest ranking ever at 24th place, having previously peaked at 11th on the list in 2012.
The report notes that the number of people dining alone in the United States has increased by 53 percent over the past two decades.
The UK also hit a low point, landing at 23rd with its poorest life satisfaction ratings since 2017.
At the bottom of the list, Afghanistan remains the unhappiest country, with Afghan women reporting particularly harsh conditions. Sierra Leone and Lebanon followed as the second- and third-unhappiest nations.
Happiness also has its effect on politics, with populism being associated with unhappiness.
“Whether populists are on the left or the right depends on trust,” the researchers said. “People who trust others veer to the left, those who do not veer to the right.”
Alarming Rise in Social Isolation Among Young Adults
The report revealed a troubling trend: 19 percent, or nearly one-fifth, of young adults worldwide reported having no social support in 2023, marking a 39 percent increase from 2006.Rankings were based on self-assessed life evaluations averaged between 2022 and 2024. Researchers across economics, psychology, and sociology analyzed contributing factors, including gross domestic product per capita, healthy life expectancy, having someone to count on, freedom, generosity, and perceptions of corruption.
Reflecting on Finnish happiness, Helsinki resident Jouni Purhonen called his compatriots’ disposition “really calm.”
“So we have the time to think about things like live our life really peacefully and I guess easily, if you will,” Purhonen said.
