The United States is no longer one of the happiest countries in the world, citing issues including the nation’s economy, according to Gallup’s recent World Happiness Report. This marks the first time in 12 years, since the report was launched, that the U.S. did not rank among the world’s 20 happiest countries.
Americans reported a significant decline in happiness, dropping the U.S. eight slots from the previous year to No. 23. The Gallup research highlights that global happiness inequality has risen by more than 20% over the past 12 years across various regions and age groups. The data reveals a drop in well-being among American adolescents and young adults. This cohort reports feeling less supported by friends and family, less free to make life choices and more stressed and less satisfied with their current living conditions.
People aged 60 and older in the U.S. reported high levels of well-being compared to younger Americans. In fact, the U.S. ranks in the top 10 countries for happiness in this age group. By 60, life can feel more secure, especially for people with good health, financial stability and strong social connections.
The Nordic countries continue to top the happiness rankings, highlighting strong social support and high standards of living. The top 10 happiest countries in the Nordic region include Denmark, Iceland, Sweden and Norway, with Finland topping the list. According to the Organization for Economic Cooperation and Development, Finland is leading in education, work-life balance, environment quality, social connections, safety and life satisfaction.
The World Happiness Report provides essential insights into global happiness rankings. Its statistical analysis covers various facets to understand and compare country-level happiness. The report utilizes six categories, including gross domestic product per capita, social support and healthy life expectancy to measure and compare happiness across nations.
Peak Happiness
Research finds that happiness tends to follow a U-shaped curve across different age groups. Happiness is high in childhood and early adolescence due to strong family bonds, a sense of security and fewer responsibilities.
Then, there is a dip in middle age as people enter adulthood (roughly ages 20 to 50), and happiness scores tend to decline. This can be attributed to factors such as constant career pressures, financial burdens, relationship challenges and health concerns. This is the period where the U-curve dips.
Research suggests that happiness starts to rise again around the mid-50s. This could be due to factors like having more free time after children leave home, a greater sense of perspective and acceptance of life circumstances as they age.
Having a paid-off mortgage and potentially a strong investment portfolio can alleviate financial worries, leading to a sense of security and potentially greater happiness. Financial security allows older adults more freedom and flexibility to pursue hobbies, travel or spend time with loved ones, which can contribute to happiness.
Stock market gains and a diversified investment portfolio, along with a pension, can bring peace of mind in retirement. Knowing they have the resources to cover expenses and unexpected costs can lead to greater happiness.
Baby Boomers—born between 1946 and 1964—are currently the wealthiest generation on the planet. Their mean net worth falls between $970,000 to $1.2 million, Fortune reported.
Declining Happiness
Young Americans are confronted with a confluence of challenges that cause unhappiness. Gen-Z feels substantial anxiety and stress about jobs, long-term financial stability and major life steps, such as buying a home and starting a family. The current economy and job market are primary sources of uncertainty for this generation, according to EY’s 2023 Gen-Z Segmentation Study.
Seeing the wave of massive layoffs in late 2022 through the first half of 2023 has created feelings of distrust toward employers and job insecurity. Consequently, the EY data revealed that Gen-Z’s anxiety levels are at an all-time high.
According to the report, over 50% of Gen-Zers said they are “extremely worried about not having enough money.” Nearly 70% of the respondents self-reported that their financial situation was not looking good.
A study by McKinsey last year found that Gen-Z faces an unprecedented behavioral health crisis. Zoomers in America reported the least positive outlook and the highest level of mental illness of any generation. This cohort is going through what looks like a decline in economic opportunities. Saving for retirement seems out of reach and will become even harder. Almost 60% of Gen-Zers say their basic needs are not being met.
Young adults are having a challenging time finding good, well-paying jobs. The job market is extremely competitive, as more and more Americans attain college degrees. Furthermore, employers are requiring unrealistic professional experience for entry-level positions, making it difficult for recent graduates to compete in the job market.
Source: Forbes
