The United States has experienced a sharp decline in global happiness rankings, falling to No. 24 in the latest World Happiness Report—its lowest position in the report’s 13-year history.
Last year, the U.S. dropped out of the top 20 for the first time, but the continuous decline has researchers particularly concerned.
Youth Well-Being Driving the Decline
A major factor behind the drop is the declining happiness among young Americans. According to Jan-Emmanuel De Neve, an Oxford professor and editor of the report, the decline is particularly driven by people under 30.
“If you were only to assess those below 30, the U.S. wouldn’t even rank in the top 60 happiest countries,” De Neve told Fortune.
Inequality and Social Isolation Are Key Factors
Unlike Nordic nations such as Finland (No. 1), Denmark (No. 2), and Iceland (No. 3), where well-being is more evenly distributed, the U.S. has greater economic inequality, affecting overall happiness.
“In these Scandinavian countries, a rising tide lifts all boats,” De Neve explained, adding that in Finland, most people rate their happiness at seven or eight on a scale of ten, whereas in the U.S., responses are more polarized, with both high and extremely low ratings.
Additionally, social isolation is growing. In 2023, nearly one in five young adults in the U.S. reported having no one to rely on for support. Data also shows that the number of people dining alone in the U.S. has surged 53% since 2003.
“You see an extraordinary increase in dining alone over the past two decades in the U.S.,” De Neve noted.
This social isolation fosters mistrust in others and society, leading people to form echo chambers that reinforce negative perceptions, including distrust of strangers and institutions.
Trust in Others: A Key Indicator
The study measured trust levels using a “lost wallet” experiment, where people were asked whether they believed a stranger would return a lost wallet.
Compared to Nordic countries, Americans were less likely to believe that a stranger would return a wallet or that police would ensure its safe return.
“That single item of the wallet drop is very powerful,” De Neve explained.
Broader Implications
With trust eroding and social isolation increasing, the report suggests that America’s happiness crisis may continue unless deeper structural issues—such as economic inequality, loneliness, and declining trust in institutions—are addressed.