Workplaces Are Losing Joy

The Happiness Deficit

Why are some countries thriving while others are unraveling? What’s making employees disengaged, leaders exhausted, and businesses struggle to retain talent?

The latest World Happiness Report 2025 has dropped, and the insights aren’t just about global rankings—they’re flashing warning lights for leaders, business owners, and workplaces everywhere.

The Global Happiness Shake-Up: Who’s Winning at Work & Life?

For the eighth year, Finland remains the world’s happiest country—no shock there. Strong social trust, work-life balance, and a well-being-first culture keep it at the top.

But the real surprise?

🌍 Costa Rica and Mexico have entered the top 10 for the first time. Despite economic challenges, social connection, community engagement, and purpose-driven culture set them apart.

• The U.S. hit a record low, falling to 24th.

• The UK follows, dropping to 23rd.

Why? Rising loneliness, economic stress, and declining trust in leadership—both in politics and workplaces.

Happiness Rankings: 2023 vs. 2025

✔️ U.S.: From 15th to 24th 📉

✔️Australia is ranked 11th, a slight drop from its 10th position in 2013.
✔️ UK: From 19th to 23rd 📉
✔️ Nordic countries still lead—but Costa Rica and Mexico prove happiness isn’t just about GDP.

The Happiness Economy Is Here

Let’s be real—employees are burned out, disengaged, and craving purpose in ways leaders can no longer ignore.

🚨The Employer-Employee Disconnect

🔹 60% of employees worldwide are not engaged, and 19% are actively disengaged
🔹 57% of employees feel trusted and empowered by leaders, highlighting a leadership trust gap.
🔹 1 in 5 employees worldwide feel lonely at work, with 46% likely to leave their job due to loneliness.

Happiness is no longer a ‘soft’ business metric—it’s a direct predictor of productivity, loyalty, and success. 

One powerful way to close the gap? Start with mattering.

­Leaders, Pay Attention:

The 4 Key Takeaways from the Happiness Report

• ­Social Connection Boosts Performance - Employees who share meals, coffee breaks, or informal moments with colleagues report higher well-being and engagement. Workplaces fostering connection—through team events or casual interactions—see higher collaboration and retention.

• Trust & Transparency Are Non-Negotiable - The happiest workplaces share one key trait: trust. Employees who trust leadership are:
  ✔️ 3x more engaged
  ✔️ 40% less likely to quit
  ✔️ More productive, innovative, and resilient

• Mental Health = Business Strategy - Well-being isn’t a perk—it’s a retention driver. 
  ✔️ Young employees are the most stressed-out generation ever.
  ✔️ Mental health support is now crucial for retention.
  ✔️ Leaders who discuss mental health reduce stigma & boost performance.

• Employees Are Leaving Unfulfilling Work—Fast - Purpose-driven businesses perform better and retain talent, yet many still miss the mark. Employees are actively seeking:
  ✔️ Meaningful work
  ✔️ Growth opportunities
  ✔️ A workplace that prioritises well-being

­The data is clear—trust isn’t a perk, it’s the foundation of a thriving workplace. When culture is designed with transparency and connection at its core, engagement, retention, and performance follow.