The United States has dropped to its lowest ranking ever in the World Happiness Report, coming in at No. 24.
The annual report, released on the United Nations’ International Day of Happiness, surveys residents in more than 140 countries on their quality of life. The U.S. fell out of the top 20 for the first time last year and continues to slide downward in the rankings.
Meanwhile, Finland retained its title as the world’s happiest nation for the eighth consecutive year, followed by Denmark, Iceland, Sweden and the Netherlands. Mexico and Costa Rica made the top 10 for the first time.
“They’re wealthy, they’re healthy, they have strong social ties, and they maintain a deep connection with nature,” Jan-Emmanuel De Neve, an economics professor at Oxford University and editor of the report, told Fortune about the Finnish people. “They’re not overly expressive, but they’re deeply content with their lives.”
The world’s 10 happiest countries, in descending order:
• Finland
• Denmark
• Iceland
• Sweden
• Netherlands
• Costa Rica
• Norway
• Israel
• Luxembourg
• Mexico
The report points to economic inequality and declining social trust as key reasons for America’s ranking. Though the U.S. boasts a high GDP per capita, its wealth distribution is more uneven and Americans report lower levels of social cohesion, it says.
“In the Nordic countries, a rising tide lifts all boats,” Mr. De Neve added.
