Published on Thursday by the Wellbeing Research Centre at the University of Oxford, in collaboration with Gallup and the United Nations Sustainable Development Solutions Network (UNSDSN), the annual report evaluated happiness levels across 147 countries. The rankings were based on factors such as health, wealth, freedom, generosity, and freedom from corruption, using self-reported life assessments.

For the seventh consecutive year, Finland topped the happiness index, followed by Denmark, Iceland, Sweden, the Netherlands, Costa Rica, Norway, Israel, Luxembourg, and Mexico. At the bottom, Afghanistan ranked the lowest, with Sierra Leone, Lebanon, Malawi, Zimbabwe, Botswana, the Democratic Republic of the Congo, Yemen, Comoros, and Lesotho completing the list of the least happy countries.

US Slips to 24th, Lowest Since Report’s Inception

The US, once ranked as high as 11th in 2012, continued its downward trend, slipping to 24th place in 2025. The report attributed the decline to increased social isolation and a disturbing rise in “deaths of despair” — a term referring to deaths from drug overdoses, alcohol abuse, and suicide.

“In 2023, roughly one in four Americans reported eating all of their meals alone the previous day – an increase of 53 percent since 2003,” the report highlighted. This growing preference for dining alone was especially notable among young people, reflecting a broader trend of loneliness and declining social connections in the US.

Despite a 75 percent global decline in deaths of despair since 2000 across 59 countries, the US continues to see high rates, alongside nations like South Korea and Slovenia.

Polarisation and Unhappiness on the Rise

The report connected America’s increasing unhappiness to political polarisation, noting that dissatisfaction fuels support for extreme political movements.

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“The decline in life satisfaction explains the overall rise in anti-system votes, but trust in others then comes into play. Among unhappy individuals drawn to the extremes of the political spectrum, those with low trust are more often found on the far right, whereas high-trust individuals are more inclined to vote for the far left,” the report stated.

Social Cohesion Boosts Happiness in Latin America

While the US struggles with isolation, countries like Mexico and Costa Rica climbed the happiness rankings. The report credited their strong family bonds, larger households, and regular communal meals as key contributors to wellbeing.

“Sharing meals has a strong impact on subjective well-being – on par with the influence of income and unemployment,” the report noted. “This is true across ages, genders, countries, cultures, and regions.”

The report also highlighted that social cohesion and trust are significant predictors of happiness. The simple belief that someone would return a lost wallet was found to correlate strongly with national happiness.

“Happiness isn’t just about wealth or economic 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.”

Countries with robust social safety nets and strong community bonds consistently ranked higher on the list, offering lessons for nations grappling with rising isolation and political divides.