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Canada Falls in Best Countries to Live Ranking for 2025

Is the Canada a good country to live yet? This is the question many have been asking in recent years due to the country's worsening positions in happiness rankings.
updated 2 weeks ago
Quebec City - Photo Gabriel Shakour iStock photo Getty Images
Quebec City - Photo Gabriel Shakour iStock photo Getty Images

Canada has slipped several places in the 2025 World Happiness Report, placing 18th after ranking 15th last year. This shift marks the country’s lowest position since the survey began in 2005.

RankCountryHappiness Score
1Finland7.736
2Denmark7.521
3Iceland 7.515
4Sweden7.345
5Netherlands7.306
6Costa Rica7.274
7Norway7.262
8Israel7.234
9Luxembourg 7.122
10Mexico 6.979
11Australia6.974
12New Zealand 6.952
13Switzerland6.935
14Belgium6.910
15Ireland6.889
16Lithuania6.829
17Austria6.810
18Canada6.803
19Slovenia6.792
20Czechia6.775

What the Ranking Measures

The World Happiness Report uses six core variables to determine each country’s position: GDP per capita, life expectancy in good health, social support, freedom to make life choices, generosity, and perceptions of corruption. Survey respondents also provide life evaluations on a 0-10 scale.

Why Canada’s Rank Declined

Several components contributed to the drop:

  • Canadians reported lower scores for social support and freedom to make life choices. 
  • Feelings of loneliness, especially among younger people, have increased, affecting overall life satisfaction. 
  • Inflation, high cost of living, housing affordability and healthcare delays likely weigh on perception of quality of life, even though specific variables in the report don’t directly measure all these issues.

Regional Differences Across Canada

Within Canada, some provinces show more resilience than others when it comes to happiness and life satisfaction. A recent Leger poll with nearly 40,000 respondents found that Quebec recorded the highest average happiness score of about 72.4/100, well above the national average of 68.7. Prince Edward Island and Manitoba had the lowest provincial scores.

Implications for Canada’s Public Policy

This ranking decline signals that Canadians’ well-being faces meaningful challenges beyond economic growth alone. Policymakers may need to invest more in mental health supports, affordable housing, strengthening social networks, and ensuring that people feel they have real freedom and choice in their lives. Improvements in healthcare access and reducing financial stress could bolster citizens’ life satisfaction.

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