Have you also lost reverse gear?
As others have said, it sounds like the gearshift mechanism has disconnected or broken, somewhere. I'm not sure of the detail on this actual motor, but there will be a connection point in the gearchange rod somewhere in the leg, which allows the lower unit to be removed. This may be the cause of your problem. The connection can be a clevis pin, threaded rod or clamp. Have a poke around and you'll find it somewhere between the tray below the powerhead and the lower unit.