It was a day of mixed fortunes on the campaign trail for Ed Miliband on Monday.

An interview with Martha Kearney on Radio 4's The World at One, recorded in a BBC radio car in a car park in Newcastle-under-Lyme, prompted a chorus of criticism that the Labour leader was sounding less than confident on economic policy.

But as I wrote in Tuesday's Guardian Miliband gave a masterclass in an old style of campaigning – revived by the Labour leader – on how to engage with voters of all opinions.

The most "electric" encounter – the words of one Labour figure – came at the end of the day in Cleveleys, north of Blackpool, when a passer-by wandered into a question and answer session on the high street and told Miliband he was "full of shit". The man blamed the political class for immigration which, in turn, had made it impossible to find a job, he said. But at the end of a five minute encounter over a telephone exchange box in the high street they shook hands and parted as friends.

Here is the transcript of their exchange which shows:

• Miliband is no Gordon Brown. The former prime minister had his worst moment of the 2010 general election campaign when he branded Gillian Duffy a "bigoted woman" after she raised concerns about immigration.

• David Cameron faces a serious opponent on the campaign trail. The prime minister's Cameron Direct question and answer sessions, in which he takes questions from an invited audience, was innovative and made Brown look out of touch five years ago. But there is a danger that the Cameron format now looks a little formulaic and out of date as Miliband subjects himself to random questions from all-comers on Britain's high streets.

The encounter on Monday took place in Cleveleys as Miliband was talking about how, as prime minister, he would use a tax on bankers' bonuses to provide a jobs' guarantee. The money would fund 25 hours of wages at the minimum wage for young people in businesses that provide at least ten hours training.

As the crowd clapped a man interrupted and said: "You're all full of shit." Milband replied: "I'm obviously not going to persuade you sir."

As the man answered back, Miliband walked towards him with a microphone and asked him to tell his story.

The man said: Ten year ago, maybe 15 year ago I used to, I walked into any...

Ed Miliband asks the unemployed man in Cleveleys to tell his story. Photograph: Nicholas Watt for the Guardian

EM: What is your name sir?

Man: It doesn't matter does it?

As the crowd laughed, the man added: I used to walk into any of these hotels and get a job as a KP, waiter, anything. Now it is full of Poles, youths, anything. You know.

As the crowd jeered, the man said: Never mind your flaming arse. Right. I cannot get a job in this town, in my own town, because it is full of every other country.

EM: How long have you been looking for a job for sir?

Man: 14 years.

EM: 14 years?

Man: Well four years. Ten years caring for my missus and then the four years that I have been searching.

EM: You were caring for your missus because she had a disability?

Man: In a wheelchair.

EM: How is she?

Man: She's in a wheelchair.

EM: She's in a wheelchair but you are looking for work. And you have been looking for four years.

EM then turned to the rest of the crowd: OK, look this gentleman asked a really important question. The reason I asked your name was not to find out who you are or how you vote. It is just because I think you have asked a really really important question.

Man: You ask a question and you answer it with a question.

EM: No. I am going to answer it with an answer.

Man: Can you get me a job?

EM: I can't go out and get you a job now. But let me answer you with an answer and you won't like the whole answer. But just hear me out. I don't think it is because of immigration that there aren't the jobs that we need in this country. I think it is more complicated than that. We have changed our approach on immigration because we have said it is very very important...

The man interrupted

EM: Look hang on a sec. Let me just finish and then you come back. We have said what is wrong is people coming to this country and being paid less than the minimum wage, not having proper...

The man interrupted

EM: Listen to me for a sec. Not having proper rights at work. You are right in one sense. I don't think it is as simple as saying immigration means that people don't have jobs in this country. But you have got to make sure you have a fair playing field so when people come here you enforce the law and people are paid the proper wage and all that.

The man interrupted

EM: Hang on. Second thing. It isn't complicated for government to start creating work for people. There is plenty of work to be done in this country if we have the political will to do it. We have said – and I think you'd be in this category because you are 44, you are one year older than me – if you are over the age of 25 and you have been out of work for two years - we will guarantee you a job. A proper job. A proper minimum wage job. So my answer to you is we would get you working again. I am looking at you in the eye and that is the promise I am making to you.

As the crowd applauded and the man looked sceptically, EM said: Make me the prime minister and I'll get you the job.

Man: Cleveleys born and bred and cannot get work because it is full up.

EM: OK, well look. I've said to you I don't agree with you on the immigration part. I haven't got the same view as you. We didn't get it right on immigration. But what I am saying to you - maybe we disagree on immigration. But we would get you a job. Of course you shouldn't be out of work for four years. It is terrible that you have been out of work for four years. You've got your wife at home who is disabled, you want to work. We should definitely be getting you a job. I would say this as well. If you had a Labour council they would try and make a difference in getting you work.

Man: My parents worked. My family have always worked before and never Conservative. I don't vote for anybody.

EM: This gentleman says he doesn't vote for anybody.

The crowd jeered, prompting EM to say: Hang on a sec. He is entitled to his views. This is a really important conversation, this conversation. This gentleman doesn't just speak for himself ladies and gentleman. If we are honest about it this gentleman speaks for lots of people across the country who have the same view as this gentleman, who say: 'Look nobody can make a difference. You are all the same.' Now, I'm out to prove you wrong, if I can put it that way. I think we can make a difference. Part of the reason for events like this is to engage in a discussion. If I had stayed in the house of commons I wouldn't have met you. I would be talking to David Cameron which doesn't get me very far. I want to to thank you for having a conversation with me.



EM and man shakes hands over telephone exchange box

EM said: OK. Thank you. Very nice to talk to you. Cheers. Cheers.

Ed Miliband shakes hands with the unemployed man in Cleveleys after their conversation. Photograph: Nicholas Watt for the Guardian

EM to crowd: Look this is a really important lesson for us. In a way it should be a humbling lesson for us. It is what we meet on the doorstep - people who say you can't change the country. Actually by engaging with people and having dialogue with people and knocking on doors you can do that.