(Reuters) -Payments firm Block raised its forecast for annual adjusted core earnings on Thursday and boosted its share buyback program, betting on resilient consumer spending and sending its shares up 7.4% after the bell.

A tight labor market has afforded job security for Americans, allowing them to continue spending on travel, shopping and dining out, even as interest rates stay high.

Block now expects annual adjusted core earnings of at least $2.90 billion, higher than its prior forecast of $2.76 billion.

The Oakland, California-based company expects third-quarter adjusted core earnings of $695 million, above analysts' expectations of $679.7 million, according to LSEG data.

The company also approved the repurchase of up to $3 billion of its shares, additional to its existing $1 billion buyback program that has been completed.

Jack Dorsey-led Block has focused on driving "profitable growth" by cutting jobs, reducing its real estate footprint and scaling back discretionary spending.

Earlier this week, larger rival PayPal also raised its full-year adjusted profit forecast for the second time.

On an adjusted basis, Block earned 93 cents per share in the three months ended June 30, beating estimates of 84 cents.

It posted total net revenue of $6.16 billion, compared with expectations of $6.28 billion.

Shares of the company have slumped 22.6% so far this year, underperforming peer PayPal's 6.3% gain.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Sriraj Kalluvila and Devika Syamnath)