Hi Ser1ph!
Thanks for the reply!
I think I figured it out. It seems that I had overseen the fact that Taskmasters give negative happiness (-5), and I had a bunch of them. I only managed around this by getting hold of limestone and copper so that I could upgrade the main building and get more Administration points, and thus being able to remove some Taskmasters. Quite interesting balance I must say, I seem to have tried to overgrow my village too early, and without more advanced resources! :)