🇨🇦 Canada’s Decline in Happiness and Democracy: A Wake-Up Call Before the Next Election

Two concerning reports emerged this week, presenting a sobering picture of Canada's social and democratic well-being. According to the World Happiness Report 2025, Canada has dropped from 5th to 18th place in just five years. Meanwhile, the V-Dem Democracy Report 2025 underscores an accelerating global trend towards authoritarianism, with Canada no longer measuring up to the liberal democracies of Northern Europe, to which we often compare ourselves.

Each of these reports is troubling on its own. Together, they raise a fundamental question: What's going wrong in Canada, and what can we do about it as the next federal election nears?

📉 The Happiness Slide: What the Numbers Say

Once a model for well-being, Canada now ranks outside the top tier of happy nations. The World Happiness Report ranks countries based on several key factors: social support, income, health, freedom, generosity, and trust in institutions.

Canada's drop in the rankings isn't solely linked to economics—it's about social cohesion. The report points to increasing loneliness, particularly among young people, and a waning trust in others and public institutions. These are fundamentally human issues that extend beyond GDP and inflation.

- Benevolence—such as helping strangers, donating, and volunteering—continues to be a strong predictor of happiness. Although these acts increased globally during COVID-19 and have remained above pre-pandemic levels, the emotional gains in Canada have not kept pace.

Below is a chart illustrating Canada's decline in happiness rankings from 2008 to 2023.

Chart source: The Globe and Mail,

🗳️ Democracy Under Pressure

The V-Dem Democracy Report finds that liberal democracies are now the least common regime type globally, with nearly three-quarters of the world's population living under autocratic rule.

Canada remains classified as a democracy, but there are concerning warning signs. The global trend of democratic backsliding is infiltrating traditionally stable democracies, and Canada is no exception. Increasing polarization, rampant misinformation, dwindling trust in media, and heightened voter disengagement signal a system under strain.

In contrast, when people lose faith in their institutions and in one another, national well-being suffers. We’re seeing this play out in Canada, where political polarization, social fragmentation, and economic anxiety are driving deep divisions. The World Happiness Report confirms the trend: widespread dissatisfaction and distrust are not just symptoms of decline—they are fuel for extremism, particularly on the far right.

And this erosion of trust doesn’t exist in a vacuum. It’s occurring at a time when Canadians are grappling with a cost-of-living crisis, a housing market that is out of reach for many, aging infrastructure, and increasing questions about Canada’s global positioning. How do we balance our economic dependence on the U.S. with the necessity to diversify trade? How do we manage immigration in a manner that meets labour needs while also ensuring strong integration? And how do we better utilize the talent — particularly that of newcomers — already in the country?

These aren't abstract policy discussions; they are existential questions about the kind of society we aspire to build and whether our institutions are robust and inclusive enough to lead us there.

🧩 The Connection: Democracy and Well-Beng

There is a well-established connection between strong liberal democracies and higher levels of happiness. Countries like Finland, Denmark, and Iceland consistently top the rankings for both democracy and happiness. People in these societies trust each other and their governments. They feel they have a voice in shaping their future and believe the system is working for them and their communities.

In contrast, when trust in institutions and among fellow citizens erodes, overall happiness declines. Increasing political polarization, growing social isolation, and economic uncertainty create fertile ground for frustration and disillusionment. As the World Happiness Report makes clear, this combination of unhappiness and distrust often fuels support for populist or anti-establishment movements, particularly on the far right.

🇨🇦 What Can Canadians Do?

With a federal election on the horizon, now is the time for Canadians to reflect on what kind of country we want to be — and how we can rebuild trust, connection, and democratic health.

Here are a few things to consider:

1. Vote with Empathy and Engagement

   Don’t sit this one out. A healthy democracy requires participation. Inform yourself. Ask candidates tough questions — not just about affordability, but about their plans to strengthen trust, democracy, and social cohesion.

   
   

2. Rebuild Social Trust

   The World Happiness Report shows that expecting kindness from others is a stronger predictor of happiness than income or even personal safety. Start local: reconnect with neighbours, volunteer, and participate in community life.

   
   

3. Support Institutions That Protect Democracy

   A free press, independent courts, transparent government, and inclusive public dialogue are the cornerstones of liberal democracy. They need defending — not only from political pressure but from public apathy.

   
   

4. Advance Inclusive, Forward-Thinking Policies

   From housing to infrastructure, immigration to trade, we need policies that are not just reactive but visionary — grounded in equity, inclusion, and long-term thinking.

   
   

🔍 What We Still Need to Understand

To address the crisis in happiness and democracy, we need more than just political will — we need better data, insight, and honest conversations. Areas that demand further research include:

·       Understanding the Root Causes of Youth LonelinessWhat’s driving social isolation among young Canadians, and how can policy and community respond?

·       Mapping the Decline in Civic TrustWhat are the real drivers behind Canadians’ eroding trust in media, government, and institutions?

·       Measuring Integration Outcomes for ImmigrantsHow can we ensure that newcomer talent is not simply welcomed, but also empowered to thrive?

·       Examining Canada’s Global PositioningWhat does a modern, multipolar trade strategy look like for Canada — one that reduces vulnerability and expands opportunity?

🚨 Final Thought

We are at an inflection point. The data from the World Happiness Report and V-Dem Democracy Report tell an urgent and clear story: Canada’s social cohesion and democratic strength are weakening, and we must act.

This election transcends party lines and platforms. It’s about rebuilding trust, restoring optimism, and reimagining the kind of Canada we want future generations to inherit.