It's a typical comparator application, so you ideally need a comparator, rather than an op-amp.
If you replaced the 741 with a comparator, which can work at 5V, such as the the MCP6541 or TLC3702 (note that this has a different pin-out) it would work.
If you don't have either of the above, then you could try the LM358, an op-amp designed for use at lower voltages and its inputs work down to the negative rail.
The best cheap and commonly available part for your application is the LM393, but it has an open collector output, which means its output can only be pulled down to 0V, so the LED will need to be wired from the output to +V and the inverting and non-inverting inputs exchanged.
Shouldn't R2 be 47k?
