The Tramp works on an assembly line, where he suffers greatly due to the stress and pace of the repetitive work. He eventually suffers a nervous breakdown and runs amok, getting stuck within a machine and throwing the factory into chaos; he is then sent to the hospital. Following his recovery, the now unemployed Tramp is mistakenly arrested in a Communist demonstration. In jail, he accidentally ingests smuggled cocaine, and in his subsequent delirium, he avoids being put back in his cell. When he returns, he stumbles upon a jailbreak and knocks the convicts unconscious for which he is hailed as a hero and given special treatment. When he is informed that he will soon be released due to his heroic actions, he argues unsuccessfully that he prefers life in jail.
Upon release, he applies for a new job with a shipbuilder but leaves after causing an accident. Soon after, he runs into an orphaned girl, Ellen, who is fleeing the police after stealing a loaf of bread. Determined to go back to jail and to save her from arrest, the Tramp tells the police that he is the thief and asks to be arrested, but a witness reveals his deception and he is freed. He then eats an enormous amount of food at a cafeteria without paying to get arrested, and once again encounters Ellen in a paddy wagon after he is put in it. It soon crashes however, and she convinces him to escape with her. The Tramp then gets a job as a night watchman at a department store, and encounters three burglars led by "Big Bill," a fellow worker from the factory, who explains that they are hungry and desperate. After sharing drinks with them, he wakes up the next morning during opening hours and is arrested once again for failing to call the police on the burglars and for sleeping in the store's clothes on a desk, shocking a customer and the storekeeper.
Days later, Ellen takes him to a run-down shack to live in. The next morning, he reads about an old factory's re-opening and lands a job as a mechanic's assistant. The other workers then suddenly decide to go on strike, and tell the Tramp to leave with them. Outside the factory, he accidentally launches a brick at a policeman and is arrested again.
He is released two weeks later, and learns that Ellen is now a café dancer. She gets him a job as a singer and waiter, but he goes about his duties clumsily. During his floor show, he loses his cuffs, which bear the lyrics to his song, but he rescues the act by improvising the lyrics using gibberish and by pantomiming. When police arrive to arrest Ellen for her earlier escape, the two are forced to flee again, and Ellen despairs that their struggles are all pointless, but the Tramp reassures her. At a bright dawn, they walk down the road towards an uncertain but hopeful future.
