Why Icelanders are happier than ever

Iceland is without doubt one of the few locations on the planet the place happiness is rising. Locals say the key lies in nature, gender equality and a deep-rooted sense of resilience.

For the third yr in a row, Finland has topped the 2025 World Happiness Report. Whereas the Nordic international locations historically fare nicely within the rankings, Denmark (ranked second), Sweden (fourth), and Norway (seventh) have all reported a internet decrease complete happiness rating for the reason that survey began, measuring a slight decline in happiness over time. In reality, out of the highest 20, solely seven international locations have been getting happier yr on yr – and Iceland stands out as having one of many greatest will increase of all of them, seeing a 9.1% enhance since its measure on the primary index in 2008.

Ranked the third-happiest nation on the planet this yr (in comparison with 18th in 2008), Iceland scores the best out of all international locations in social assist, with spectacular scores within the freedom and generosity measures as nicely (third and fifth respectively). Regardless of its comparatively small inhabitants – numbering just below 400,000 – the nation continues to spend money on infrastructure, progressive social insurance policies and tourism.

However the factor that makes many Icelanders the happiest is one thing that the federal government has comparatively little management over: the nation’s otherworldly landscapes.

“From house, from work, it’s totally straightforward to get to a nationwide park or open areas the place we are able to hike, stroll by the river, coast or lakes,” says Hrund Gunnsteinsdóttir, creator of forthcoming e book InnSæi: Heal, Revive and Reset with the Icelandic Artwork of Instinct. She particularly loves the panorama’s variations and stark contrasts, from inexperienced and plush to barren and black sands.

As a geologist initially from the US, Jessica Poteet moved to Iceland particularly to be nearer to nature. “Being someplace with volcanoes and Northern Lights and cotton candy-pink skies with snow-capped mountains in winter is a dream,” she says. “I by no means take it without any consideration. It is one of many key issues contributing to my happiness.”

That mentioned, residents be aware that winters could be lengthy and darkish, which could be a problem – however that the summer season’s midnight Solar greater than makes up for it. Poteet notes that on notably sunny days, employers will usually provide a “Solar vacation” so individuals can get pleasure from a day of mountaineering or snowboarding, relying on the season.

The nation’s sturdy social security internet additionally lends residents a way of stability and ease. “Throughout Covid, I misplaced my job. I used to be capable of go on unemployment till I discovered a brand new job,” says Brenna Elizabeth Scheving, one other US expat residing in Iceland. She additionally was capable of reap the benefits of the nation’s beneficiant parental depart coverage, the place each dad and mom are entitled to share 12 months parental depart, as much as six months every, with six weeks transferrable to the opposite father or mother. The coverage applies to each adoptive and organic dad and mom, no matter marital standing or sexuality.

In reality, equitable gender insurance policies have been constructed into the nation’s DNA for many years, with the world’s smallest gender hole for 15 years operating, in line with the 2024 World Financial Discussion board. This little question results in a way of happiness as nicely, say residents.

“The federal government is run by ladies,” says Gunnsteinsdóttir, noting that Iceland had the world’s first democratically elected feminine president in 1980. “I used to be six years previous when she was elected a president, and I did not essentially conceive of a person being a president.” 

These gender equality positive factors had been laborious fought. This yr marks the fiftieth anniversary of the Girls’s Day Off, when Icelandic ladies went on strike for a day to underscore the shortage of equal illustration in politics and the labour power. “I am actually grateful to those ladies and the boys who supported them,” says Gunnsteinsdóttir. “The place you have got gender equality, the social, financial and political facets are usually extra secure and higher for individuals and the pure environment. In international locations with larger gender equality, persons are more healthy, happier and have higher wellbeing.” 

That is to not say Iceland hasn’t had its personal share of rising pains lately. Prices, notably within the capital metropolis of Reykjavík, have grown notably excessive. “The price of residing is steep, particularly housing, which could be a battle for each locals and expats,” mentioned Kevin Mercier, a French photographer who has lived in Iceland the previous six years and chronicles his travels at Kevmrc Journey.

The excessive price of short-term leases has been partially blamed for this rise in housing expense, and tourism normally has put some pressures on the small island. The nation has been reworked by tourism over the previous decade, welcoming round 2.3 million worldwide guests in 2024 – practically double the 2015 numbers) and round six instances the variety of residents. That mentioned, the advantages of tourism have outweighed the prices, say many residents, and as customer numbers proceed to develop, the nation is adopting new initiatives to handle the affect and shield its pure sources.

“The motion round making tourism extra accountable has been very grassroots and run by Go to Iceland in collaboration with native and central authorities and personal corporations,” says Gunnsteinsdóttir.

Iceland’s infrastructure has additionally seen a lift from tourism. “Ending The Ring Street [the looped highway around Iceland that was fully paved in 2019] was nice for everybody, making typically remoted communities now simply accessible,” mentioned Poteet. “Additionally, the quantity of vacationers to the Fagradalsfjall volcano meant the federal government constructed trails within the space virtually instantly. So spectacular!”

Lodging are pushing to coach guests about sustainability and the Icelandic lifestyle. Household-owned property Lodge Ranga on the south coast provides a “Reside Like an Icelander” programme, the place a neighborhood information takes friends by way of historical farmsteads and lets them drink from a nicely that’s mentioned to advertise longevity. ION Resorts, owned by feminine entrepreneur Sigurlaug Sverrisdóttir, has dedicated to having a female-majority workers throughout its two properties, ION Metropolis Lodge in Reykjavík and the ION Journey Lodge on Lake Thingvellir, the biggest lake in Iceland.

The variety of eating places, bars and cafes has additionally grown to fulfill vacationer demand, resulting in extra vibrant city centres. “After I was rising up, you’ll stroll the streets in Reykjavík and there was hardly anybody strolling round in many of the yr,” mentioned Gunnsteinsdóttir. “I personally fairly like having individuals round.”

Whatever the exterior components, it could be an inside sense of adaptability and resilience that results in Icelanders’ final happiness. Gunnsteinsdóttir factors to the traditional Icelandic phrase for instinct, innsæi, which interprets to the “the ocean inside”. 

“It is the world past phrases – of imaginative and prescient, emotions, creativeness and issues that brew earlier than they arrive to the floor of our consideration,” she explains. “It additionally means ‘to see from the within out’, which refers to having a powerful inside compass that permits us to navigate the ocean of life and the world we dwell in.”

Gunnsteinsdóttir theorises that this sense of path comes straight from residing alongside an often-unpredictable pure surroundings and fast-changing climate situations. “In recent times, we have had a number of eruptions and earthquakes. If you continuously really feel the earth is shaking, it actually reminds you that issues can change fairly quickly,” she says. “Relating to happiness, it encourages us to make the most effective out of what we now have when issues do not go in line with plan.”