When we think of happiness, we often picture meaningful work, a strong education system, and a balanced life. But year after year, it's the Nordic nations—Finland, Denmark, Iceland, Sweden, and Norway—that set a new standard. In the 2025 World Happiness Report, Finland tops the list for the seventh consecutive year, with other Nordic neighbors close behind.

In addition to Nordic countries, Sweden, Israel, the Netherlands, Luxembourg, Switzerland, and Australia made it to the top 10 list of the Happiness Report. Interestingly, none of the world’s largest countries made it to the top 10 this year.

The Netherlands and Australia are two countries on the list with a population of over 15 million. Overall, among the top twenty, only Canada and the United Kingdom have populations over 30 million. The industrial countries pushed out of the top ten between 2013 and 2025 include Switzerland (3 in 2013, 1 in 2015, and 13 in 2025), Canada (6 in 2013 and 18 in 2025), and Australia (10 in 2013 and 11 in 2025). This year, for the first time, none of the large industrial powers ranked in the top 20.

The World Happiness Report is based on data from more than 140 countries using citizens’ self-assessed life evaluations. This year, the focus is on the impact of caring and sharing on people’s happiness. Like ‘mercy’ in Shakespeare’s Merchant of Venice, caring is “twice-blessed” – it blesses those who give and those who receive. In this report, the effects and the benefits to the recipients of caring behaviour and the benefits to those who care for others have been investigated.

One of the most important factors in overall Nordic happiness is that, across the board, people in all age groups are happy. The report reveals that low happiness inequality among citizens makes everyone happier. So, what is making everyone in Northern Europe so content? Here’s a closer look at why Nordic citizens are so happy. Here are the common traits that consistently emerge among the world’s happiest countries, based on the World Happiness Report 2025:

 Strong Social Support Systems

According to the 2025 Happiness Report, across the top-ranking countries, Finland, Denmark, Iceland, Sweden, and the Netherlands, people report high confidence in having someone to rely on in times of need. This indicates robust community ties and institutional safety nets—key buffers during personal or collective crises.

Low Levels of Corruption

Citizens in happier countries tend to trust their governments and public institutions. This trust contributes to a greater sense of societal fairness, stability, and safety.

Freedom to Make Life Choices

Personal autonomy is valued and protected. People in these countries feel empowered to shape their own lives, from career paths to family decisions, without significant social or economic constraints.

High GDP per Capita (but Balanced with Equality)

Economic prosperity provides a foundation, but it’s balanced with policies promoting equity. These countries reinvest heavily in healthcare, education, and welfare, ensuring broad access and minimal inequality.

Healthy Life Expectancy

Happiness correlates strongly with physical and mental well-being. The happiest countries invest in public health, preventive care, and active lifestyles, contributing to longer and healthier lives.

Generosity and Prosocial Behavior

Acts of kindness—like volunteering or helping strangers—are more common in Nordic countries. These behaviors reinforce community bonds and a sense of shared purpose.

Work-Life Balance and Flexibility

Shorter workweeks, flexible hours, and extended parental leave contribute to lower stress levels and better family dynamics. These policies support overall well-being and reduce burnout. Most of the Nordic countries have short working weeks. It typically ranges from 37.5 to 40 hours. The maximum working hours in Norway are fixed at 40 hours per week. Denmark is known for having the shortest workweeks in the world, with a minimum of 33 hours per week, according to tech.co.

Focus on Mental Health and Well-being

Mental health is treated as a national priority. Many top countries offer accessible counseling services, workplace well-being programs, and mental health education. The Happiness Report unveils that people with caring personality traits tend to prioritise others’ needs and wellbeing, and they are often kind to themselves as well. They enjoy more balanced social support interactions in their relationships, which has implications for their well-being. Research also indicates that more compassionate people have higher wellbeing and experience fewer mental health symptoms. Even in high-stress jobs, those who are more compassionate report lower stress and burnout. 

So, the real secret to happiness is not just wealth or stunning landscapes. It’s trust, connection, compassion, and systems that prioritise well-being for all. Maybe it’s time the rest of the world took a cue from the Nordic nations.