OTTAWA — Canada has fallen to its lowest-ever position in the global happiness rankings, landing at 25th place in the 2026 World Happiness Report — a sharp drop from 18th last year and a significant decline from its peak of fifth place in 2015.
The annual report, produced by the University of Oxford Wellbeing Research Centre in partnership with Gallup and the United Nations Sustainable Development Solutions Network, surveys more than 100,000 people across 140 countries, asking them to rate their overall life satisfaction.
Experts say the decline in Canada’s ranking is being driven largely by younger populations. According to researchers, youth under 25 in Canada and other Western countries are reporting lower levels of life satisfaction compared to previous years.
One major contributing factor identified in the report is the impact of heavy social media use, particularly among young people. Algorithm-driven platforms are linked to declining mental well-being, with the effects appearing more pronounced among young women.
While countries like Canada, the United States and Australia have seen declining happiness levels, Nordic nations continue to dominate the rankings. Finland secured the top spot for a record ninth consecutive year, followed by Iceland, Denmark and Sweden.
Researchers attribute the success of these countries to strong social support systems, equitable wealth distribution and accessible public healthcare — factors that contribute to both economic security and overall well-being.
Interestingly, some Latin American countries are outperforming wealthier nations in happiness rankings. Costa Rica ranked fourth, the highest ever for a country in the region, while Mexico placed 12th. Experts say strong family ties and close social connections play a major role in their higher rankings.
Notably, for the second consecutive year, no English-speaking country made it into the top 10, highlighting a broader trend of declining well-being across developed Western nations.
The report suggests that beyond economic factors, social connection, mental health, and lifestyle habits — particularly among younger generations — are increasingly shaping how people perceive happiness.
As Canada continues to navigate rising living costs, digital pressures and shifting social dynamics, the findings raise important questions about how to improve overall quality of life, especially for the next generation.