I have come to observe that some employers of labor,esp educational institutions,banks,firms while giving practical test to those who applied as secretary still test their applicants on shorthand. Why can't they just give them documents to type to test their speed and accuracy?

not true. I am an office technology and management graduate(secretarial studies) and all d while I have been going for interview I have never done shorthand. they jus ask questions about qualities of a sec and I do some typing wit computer.

People still use shorthand? If memory serves me right I remember reading somewhere shorthand got discontinued with the proliferation of mobile phones which can record conversations. Nobody has the need to take down dictation using a pen and paper when they can easily record the dialogue for proper transcription later.

Shorthand is extinct.

It already served its days.