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World Happiness Report 2024: Australia Ranks 10th as Finland Takes First Place

Finland tops the World Happiness Report 2024 and Australia ranks tenth. The scores are 2021–2023 life evaluations, and Australia's position differs sharply by age.
From TheFinanceBase Team3 min to read
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In the World Happiness Report 2024, Finland ranked first overall with an average life-evaluation score of 7.741, and Australia ranked tenth with 7.057. Both scores are averages of answers collected across 2021–2023 on a 0–10 scale. They describe how people rated their lives over those three years, not how happy the countries felt in 2024.

What the ranking measures

The report’s “happiest” label is shorthand for life evaluation. Respondents answer the single-item Cantril Ladder question, imagining a ladder where 10 is the best possible life for them and 0 is the worst. The report’s authors describe the basis this way: “Scores are based on individuals’ own assessments of their lives, in particular their answers to the single-item Cantril ladder life-evaluation question.” (World Happiness Report 2024, p. 15.)

That makes the ranking a measure of how people judge their lives as a whole. It is not a reading of daily mood, and it is not a formula that adds up the factors the report uses to explain differences between countries. Those factors are covered in a separate section below.

The report typically collects around 1,000 responses per country each year, weights them to produce national averages that represent the population, and uses three-year averages for its standard rankings. For this edition the averaging window is 2021–2023.

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The top of the 2024 table

Rank Country Average life evaluation (2021–2023, 0–10 scale)
1 Finland 7.741
2 Denmark 7.583
3 Iceland 7.525
9 Switzerland 7.060
10 Australia 7.057

Switzerland’s rank is inferred from the report’s statement that Australia sat just behind it; the figures above are the report’s published scores for the 2024 edition.

Finland’s first place was its seventh consecutive year at the top of the overall list. Australia’s tenth-place finish is the headline, but the gap between Australia and Switzerland is 0.003 points, which is well within the uncertainty the report attaches to close ranks (see the section on rank uncertainty).

Australia’s result depends heavily on age

The overall ranking hides a large difference between age groups. The report ranks countries separately for different age bands, and Australia’s position changes sharply across them.

Age group Australia’s rank in the 2024 edition
Under 30 19th
60 and above 9th

The decline among younger Australians

The report finds that life evaluations fell across all age groups in Australia, Canada, New Zealand and the United States, with the steepest fall among young people. The authors put it this way: “For the United States, Canada, Australia and New Zealand, happiness has decreased in all age groups, but especially for the young, so much so that the young are now, in 2021-2023, the least happy age group.” (World Happiness Report 2024, age-group chapter.)

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The overall tenth place therefore reflects older respondents doing comparatively well more than it reflects a uniformly high rating across the population.

Other notable placings

  • United States: ranked 23rd, its first placing outside the top 20 since the report began in 2012.
  • Finland: first overall for the seventh year in a row.
  • Canada and New Zealand: both recorded declines in life evaluation across all age groups, with the largest drop among the young, as Australia did.

What the report uses to explain the scores

The 2024 edition also examines six variables that help explain differences between countries:

  • GDP per capita
  • Healthy life expectancy
  • Social support
  • Freedom to make life choices
  • Generosity
  • Perceptions of corruption

Together these six variables explain more than three-quarters of the variation in national annual average ladder scores across countries and years, using data from 2005–2023. They are explanatory variables that statistically account for differences in scores. They do not determine the rank, and no country’s position is calculated by adding them up. For personal-finance readers, GDP per capita is only one of the six, and it does not on its own predict where a country lands.

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How much a rank difference means

The report notes that confidence intervals around ranks can be wide, particularly where national averages sit close together or where samples are smaller. Australia’s 7.057 and Switzerland’s 7.060 are effectively tied on the score scale, so their order is not strong evidence that residents of one are meaningfully happier than residents of the other. Read the top ten as a group of countries with similar high ratings, not as a precise ladder.

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Reading the 2024 result today

This is the 2024 edition, built on 2021–2023 data. Later editions of the report use different data windows and may rank countries differently, so do not treat Australia’s tenth place as its current standing. When comparing countries, use the same edition and averaging period, and compare age groups as well as overall rank.

The useful reading of this result is that Australia rates its overall life highly, but the report’s age breakdown shows that the rating is not evenly shared across generations, and that the young have reported the sharpest decline.

Quick Recap

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