The index was created, in part, to help global companies identify which countries are most effective in building a talented workforce.
"There is a widespread mismatch between what companies need in terms of skills and what local labor markets can offer," said Insead dean Ilian Mihov in a statement. "Obviously, these issues require a collaborative effort among government, business, organized labor and global business schools."
In May, Switzerland was ranked the second most competitive country in the world after the U.S., according to the IMD World Competitiveness Center. Switzerland is known for policy stability, predictability and budgetary discipline.
The Insead index was launched in partnership with the Human Capital Leadership Institute of Singapore and HR consulting firm Adecco.
It was based on data from a range of international sources such as the World Bank, the World Intellectual Property Organization and UNESCO, and the ranking model was audited by the European Commission's Joint Research Center.